Adaquant Investing Blog

Adaquant Investing Blog2018-08-10T12:59:06+00:00

Adaquant estimates 2018Q3 available now

Adaquant asset class return estimates as of 3rd quarter 2018 are available now.

ETF model portfolios have been updated to reflect the new return estimates. You can purchase the model portfolios in ETF Model Portfolios page.

If you want to create your own asset allocation plans, you will get these latest estimates when you buy the license for Adaquant Asset Allocation Suite.

How does the investing environment look at the moment?

In US, Federal Reserve has been steadily increasing the federal funds rate since end of 2015. These increases have caused all types of interest rates to increase (especially short-term), which means investing in fixed-income has […]

By |September 25th, 2018|

How to read model portfolios

Since August 2018, the model portfolios can be bought in pdf format.

This post describes how to read the model portfolios i.e. the asset allocation reports made with the Adaquant Asset Allocation Suite software. If you feel you need any additional information on the model portfolios, the terminology or investing in general, it is warmly recommended to read the book Investing for Non-Finance People.

Page 1: settings

General settings table describes what kind of settings were used to create the asset allocation plan. In the description you can find what risk profile was used (conservative, average, high risk) and for which currency […]

By |August 9th, 2018|Tags: , |

Adaquant estimates 2018Q2 available now

Adaquant estimates as of 2nd quarter 2018 are available now. You will get these latest estimates when you buy the license for Adaquant Asset Allocation Suite.

Interest rates continue to climb in United States, which means investing in fixed-income becomes more and more attractive. Also inflation expectations are increasing, which increases the expected returns for stocks and other riskier asset classes. Together this means higher expected returns from investment portfolios and while not yet in the level of historic returns, investing is nevertheless becoming more attractive.

In Europe, Switzerland and UK the interest rates are still not rising in any meaningful way. […]

By |June 27th, 2018|Tags: |

Adaquant estimates 2018Q1 available now

Adaquant estimates as of 1st quarter 2018 are available now. You will get these latest estimates when you buy the license for Adaquant Asset Allocation Suite.

The biggest change compared to previous quarterly estimates is that the short-term interest rates in United States continue to increase significantly. This is especially visible in short-term corporate and government debt, however also the money market fund and savings bank account rates have been increasing. Increased interest rates mean higher estimated returns for short-term fixed-income investments. The estimated return for short-term government debt is now slightly above the expected inflation rate, which has not been […]

By |March 27th, 2018|Tags: |

Human capital in asset allocation plans

Adaquant Asset Allocation Suite also supports human capital in the asset allocation plans. Human capital is defined as the total value of your future savings.  When human capital is considered as an asset class, it basically means that you are the asset. Your skills, knowledge and experience enable you to earn money. If you earn salary or other income that exceeds your costs, then your human capital has a positive value.

If you are a young person, for example just graduated from the university and starting your career, your human capital has the highest value. You have a long time until […]

By |February 16th, 2018|Tags: , , |

How to model real estate investment returns

Here I take a look how I set up my real estate investments to Adaquant Asset Allocation Suite.

The estimated return and volatility in the Adaquant estimates file is for unleveraged real estate investments and for price appreciation only.

What does this mean in practice? A good rule of thumb is that on average, the prices of residential real estate increase long-term together with the inflation. However, this is not the whole return that the real estate investor gets. In case of buying own home, there may be benefits of owning the property versus having to rent a similar property (i.e. all costs […]

By |February 14th, 2018|Tags: , , |

Equity crowdfunding

In equity crowdfunding, large number of individual investors finance startup companies buy taking a partial ownership of the companies or at least making a contract to participate into the success of the companies. There are nowadays dozens of equity crowdfunding platforms such as SeedInvestAngelList and Companisto that make the investment process easy for the projects and the people financing the projects. Investing in startups in the early phase may offer significant benefits. Participating into a successful company that one day will be sold to another company or is listed in the stock market will multiply your investment.

The question for the […]

By |February 5th, 2018|Tags: , , |

Adding crowdlending as new asset class

Crowdlending is one of the newer asset classes available to individual investors. Crowdlending enables individual investors to directly loan money to other individuals and small/mid-size companies. The basic idea is that one investor can give partial loans to a large number of borrowers and thus build a broadly diversified loan portfolio.

One of the pioneer platforms, and the biggest, is LendingClub. In December 2017, it had loans active with combined worth of over $8 billion. It has been existing since 2007, has over 1.5 million investors and over $28 billion borrowed historically. It is also a publicly listed company in New […]

By |January 29th, 2018|Tags: , , , |

Creating a simple asset allocation plan

This post is an example of how to make asset allocation plan with Adaquant Asset Allocation Suite. This is good reading especially for those that have just installed and opened the Suite and wondering how to start using the tool.

First step is to create a new clean simulation. While you can also change the settings of pre-configured simulations with ids 1-4, I would not recommend this – the Adaquant team might change the settings of these simulations in the data updates or future releases. When you create a new simulation, it gets an id of 1000 or above. This means […]

By |January 26th, 2018|Tags: , , |