Here’s how this works…
Each week we’ll introduce you to one new investing term that you’ll need to know if you want to start investing.
Then we’ll provide a summary of the past week’s financial news and explain why it’s relevant to you as a beginner investor and, more importantly, how you can use this knowledge to your advantage.
So, let’s get cracking!
TERM TO LEARN
AN ALTERNATIVE INVESTMENT IS A FINANCIAL ASSET THAT DOES NOT FALL INTO ONE OF THE CONVENTIONAL INVESTMENT CATEGORIES, SUCH AS STOCKS, BONDS, AND CASH.
ALTERNATIVE INVESTMENTS CAN INCLUDE PRIVATE EQUITY OR VENTURE CAPITAL, HEDGE FUNDS, MANAGED FUTURES, ART AND ANTIQUES, COMMODITIES, AND DERIVATIVE CONTRACTS. REAL ESTATE IS ALSO OFTEN CLASSIFIED AS AN ALTERNATIVE INVESTMENT:
Most alternative investment assets are held by institutional investors or high-net-worth individuals due to their complexity, lack of regulation, and associated risks.
Many alternative investments have high minimum investments and fee structures, especially when compared to mutual funds and exchange-traded funds (ETFs).
Alternative investments come with unique characteristics, risks, and considerations that investors need to carefully evaluate
INVESTMENT NEWS FOR BEGINNERS
3 takeaways for investors tracking executive insider trades.
Beginner investors can learn by watching how company executives buy or sell shares of their own companies. When executives trade their own stock, it can provide clues about how they feel about the company’s future.
Why this matters to you…
Understanding these signals can help beginners avoid poor investments or spot opportunities early.
Knowing how and when to consider insider trades can be part of a beginner’s toolkit for smarter investing decisions.
Frequent buying by insiders may show confidence, while heavy selling could be a warning, but context is key.
What you need to do…
Treat them as one piece of information among many, rather than a guaranteed tip.
Track insider trades through trustworthy platforms that report these transactions clearly.
Pair insider trade data with your own research on company fundamentals and market conditions.
Global de-dollarization trend speeds up - JPMorgan warns what comes next.
Countries around the world are increasingly moving away from using the U.S. dollar for trade and financial transactions—a trend known as “de-dollarization”. JPMorgan, a major global investment bank, warns that this shift is gaining speed and could have serious effects on global finance. For decades, the U.S. dollar has been the main currency used for international trade, saving, and investing (like a “global money standard”). Now, some countries, especially those unhappy with U.S. economic influence or trade policies, are trying to use other currencies like the Chinese yuan or the euro instead.
Why this matters to you…
If fewer countries use the U.S. dollar, its global demand could drop, possibly lowering its value.
Central banks could respond by raising interest rates again, which often affects stock prices.
Countries like China, India, and Brazil could gain influence as their currencies and markets grow stronger.
What you need to do…
Consider ETFs or index funds that include international companies outside of the US.
Start paying more attention to emerging market funds or companies tied to these trends.
Understand how global trade and currency systems work to give you an edge in spotting long-term opportunities.
Barclays sees “macro tantrums, micro bulls” as equity positioning diverges.
Different types of investors are behaving differently in the stock market right now. Large institutional investors, like hedge funds, are cautious and have reduced some of their stock holdings because of worries about big issues like tariffs (taxes on imports) and credit risks. Meanwhile, smaller or retail investors are very optimistic and are buying more stocks, especially after a recent interest rate cut. Barclays calls this situation a mix of "macro tantrums" (big economic or political worries causing nervousness) and "micro bulls" (individual investors excited about certain stocks, especially in areas like AI technology).
Why this matters to you…
When large investors and small investors behave very differently, it can affect stock prices and volatility.
The recent cut in interest rates encouraged smaller investors to buy more stocks. Interest rates influence borrowing costs and can affect the economy and markets.
Big investors are cautious because of risks like tariffs and credit problems. As a beginner investor, understanding these risks helps in making informed decisions.
What you need to do…
Recognize that even when big investors are cautious, small investors might be optimistic, which can lead to market swings.
Keep in mind that increased ups and downs (volatility) in the market means that prices can change quickly. This affects how safe or risky investing might be.
Understand that markets can be influenced by big economic issues like tariffs or credit concerns. These can affect stock prices.
Thanks for reading this seventh edition.
Feel like you’re beginning to get the hang of all this yet?
Yes / No / Kinda - delete as applicable.
Don’t worry. Rome wasn’t built in a day. Neither was a portfolio big enough to retire on.
That’s why we’ll be back again next week, because it’s a marathon, not a sprint!