Passive investing for European investors in practice: opening an account

As discussed in the previous posts I wrote on the topic of passive investing with having European investors in mind, many people understand that passive investing is a solid cost-efficient way to hold a diversified portfolio without spending too much time on it. It is easy, however, to give up this advantage by choosing wrong/high […]

Passive investing part 9: is bond allocation and outdated option?

This is part 9 of my posts on passive investing for Europe based investors. I will discuss the current bond yields and why, in my opinion, the current levels support more than ever the case that many long term investors should avoid this option altogether. Is allocation to bonds an outdated option? As explained in part […]

Passive investing part 8: get paid for that risk

This is part 8 of my posts on passive investing for Europe based investors. I hope that the previous posts gave you some high level understanding of options for a passive investment portfolio. In this post I’ll explain my view on how to allocate your portfolio and why I think much of the advice you get […]

Passive investing part 7: bonds vs stocks

This is part 7 of my posts on passive investing for Europe based investors. After discussing historical returns for stocks and bonds it seems to be pretty obvious. You should allocate everything into bonds, they’re safe and stocks are risky! Or should you? Financial definition of risk – do you care? Mean returns of various assets […]

Passive investing part 6: historical returns – bonds and real estate

This is part 6 of my posts on passive investing for Europe based investors. This post will wrap up overview of historical returns. After discussing equities in part 5, I will wrap up the overview of historical returns with overview of returns for bonds and real estate. Bonds Bonds are assets with pre-defined payoff (coupon paid, […]

Passive investing part 5: historical returns – equities

This is part 5 of my posts on passive investing for Europe based investors. Even though I will follow the order as indicated in part 1, please feel free to ask or share any related thoughts in the comments below. In this post we will look at the risk and returns of the asset classes I […]

Passive investing part 4: asset classes

This is the fourth post in my series of articles focused on passive investing for Europe based investors. Even though I will follow the topics as indicated in the part 1, please feel free to ask or share any related thoughts in the comments below. This post will prepare us for discussion of historical returns by […]

Passive investing part 3: crowding, forecasting and (lack of) emotions

The third post of my series of articles focused on passive investing for Europe based investors, I will continue on the topic of why passive investing can be positive for your investment performance even before lower fees are taken into account. Passive approach allows you to avoid hypes and fads Maybe one of the most […]

Passive investing part 2: diversification

In this second post of my series of articles focused on passive investing for Europe based investors, I would like to explain why passive investing makes sense as a strategy for an individual investor not only from costs perspective but also from returns perspective. In particular I will write about the impact of diversification. Diversification […]

Passive investing for EU based investors, part 1

Passive investing (or indexing) is a popular way to invest, as outlined in my earlier post. This is the first article of many in which I would like to explain in a simple way: what is passive investing/indexing why indexing can make sense and what returns are to be expected why sticking to your initial […]