Apollo Global Management, Inc.’s Post

Capital markets have entered a new regime of higher volatility that can create attractive opportunities for investors who add flexibility to private credit portfolios. We see attractive opportunities in private corporate credit, asset-backed finance, and dislocated credit. Read the latest whitepaper from Apollo’s Global Head of Credit Product for insights into the potential benefits of flexibility.

Capital markets have entered a new regime of higher volatility that can create attractive opportunities for investors who add flexibility to private credit portfolios. We see attractive opportunities in private corporate credit, asset-backed finance, and dislocated credit. Read the latest whitepaper from Apollo’s Global Head of Credit Product for insights into the potential benefits of flexibility.

The Two Big Strategic Mistakes That Investors Make According to the research by Rawley Heimer, Zwetelina Iliewa, Alex Imas, and Martin Weber, people tend to start with a strategy of stopping when they’re losing and continuing when they’re winning while betting at a casino or taking on risk in the stock market. However, in reality, they do just the opposite. Once they experience a win, they tend to cash out early, and when they experience a loss, they tend to keep gambling. This behavior leads to investors leaving money on the table by bailing when they’re winning and piling up losses by sticking with bad bets. A good investment strategy is a plan designed to help individual investors achieve their financial and investment goals. Your investment strategy depends on your personal circumstances, including your age, capital, risk tolerance, and goals. Investment strategies range from conservative to highly aggressive, and include value and growth investing. For example, a conservative investment strategy might involve investing in bonds or other fixed-income securities, while a highly aggressive strategy might involve investing in emerging markets or other high-risk, high-reward opportunities. Creating a successful, sustainable investment strategy means being able to describe, communicate, and write out your process. Effective investors have beliefs about why markets function as they do, and strategies for how to exploit those beliefs for profit. It’s important to choose a strategy that suits your risk tolerance, financial situation, and long-term goals. You should also reevaluate your investment strategies as your personal situation changes. Keep in mind that there is no right way to manage a portfolio, but investors should behave rationally by doing their own research using facts and data to back up decisions by attempting to reduce risk and maintain sufficient liquidity. In conclusion, investors should be aware of the common mistakes they make while investing and should choose an investment strategy that suits their personal circumstances. They should also be prepared to reevaluate their strategies as their personal situation changes. By doing their own research and behaving rationally, investors can reduce risk and increase their chances of achieving their financial and investment goals. Source : Brabaw, Kasandra. "The Two Big Strategic Mistakes That Investors Make." CBR - Finance, December 18, 2023. Accessed January 9, 2024, from Chicagobooth.

Here is the next question of pre examination test of cs executive examination How Do You Calculate Return on Investment (ROI)? Return on investment (ROI) is calculated by dividing the profit earned on an investment by the cost of that investment. For instance, an investment with a profit of $100 and a cost of $100 would have an ROI of 1, or 100% when expressed as a percentage. Although ROI is a quick and easy way to estimate the success of an investment, it has some serious limitations. ROI fails to reflect the time value of money, for instance, and it can be difficult to meaningfully compare ROIs because some investments will take longer to generate a profit than others. For this reason,professional investors tend to use other metrics, such as net present value (NPV) or the internal rate of return (IRR).

How can investors best benefit from the sharp rise in short-term rates? Insight believes one of the most attractive current opportunities is in secured finance, where yields have risen much higher than for investment grade credit. In our view, these more than compensate for the risk being taken: https://bit.ly/3Fc5jGJ Capital at risk. For professional investors only.

An important determinant is what your goals are and what is the priority and importance of achieving them. A robust investment plan can place the life you want within your reach.

This recent paper advocating for a 100% equity allocation overlooks established principles of diversification and modern finance. Its argument, based on historical equity outperformance, ignores the complexities of risk and overlooks the benefits of a diversified portfolio. Leveraging and adjusting portfolio weights are considered more rational approaches

Equities winning long term vs. bonds isn’t a surprise result, it’s exactly what is supposed to happen and is entirely consistent with very long-established theory (which holds up pretty darn well, BTW). It just ain’t interesting to show the higher expected return asset has generally a higher realized return with the probability of winning (by some margin) increasing with your time horizon. It’s finance 101. It’s actually just math 101. Yet every few years someone writes a paper and gets a lot of attention by showing the higher expected return asset has, wait for it, a higher average realized return.

The private credit asset class has gained prominence and evolved considerably post-financial crisis. In this white paper, we introduce the asset class and address the types of questions institutional investors would be likely to ask when considering an investment in this area. We provide an overview of private credit, the unique characteristics of the asset class, an analysis of major return, risk, implementation considerations, and more. Read the full paper here: https://lnkd.in/eBh-6iC2 Disclaimer: https://bit.ly/3hJJP7G #InstitutionalInvesting #PrivateCredit

Should you invest all at once or over time?   The debate of whether to invest all at once (lump sum investing) or gradually over time (dollar-cost averaging) was explored in an excellent Vanguard article titled, "Dollar-cost averaging just means taking risk later."   The article's findings are clear: "Lump sum investing (LSI) outperformed dollar-cost averaging (DCA) in a greater proportion of historical time periods regardless of the DCA period length. As the DCA period lengthened, the probability of higher portfolio values for LSI also increased."   However, investing isn't purely a numbers game – emotions often play a significant role in decision-making. If your primary goal is to reduce short-term downside risk and mitigate feelings of regret, dollar-cost averaging may align with your objectives. On the other hand, if maximizing long-term expected returns is your ultimate aim, the data suggests that a lump sum investment is likely the more suitable approach. Source: https://lnkd.in/dPtc4Mwa