Hello luisHK, You can invest in Vanguard SP 500 index fund and enjoy your life in peace and not read any book. It is easy money cause Donald Trump will always make the market go up. It is too hard investing in stocks. Go day trade stocks, options or futures for fast money.
A random walk down Wall Street. more common sense stuff if your kids won’t be going into the finance field. there’s another book my friend recommended about asset allocation throughout life (the thesis being that stocks are not riskier than bonds over the long run as bonds but produce a higher and more tax efficient return). I’ll find the name if you want it.
if you know python. this is more calculator than programming Code: import yfinance as yf import pandas as pd import numpy as np from pypfopt import ( CLA, BlackLittermanModel, EfficientFrontier, HRPOpt, black_litterman, expected_returns, plotting, risk_models, objective_functions ) tickers = ['QQQ','XLF','VOO' ,'EZU','XME' ] ohlc = yf.download(tickers, period="5y", timeout=20) prices = ohlc["Close"].dropna(how="all") S = risk_models.CovarianceShrinkage(prices.tail(700),log_returns=1).ledoit_wolf() mean = expected_returns.mean_historical_return(prices.tail(700),log_returns=1) ef = EfficientFrontier(mean, S) ef.efficient_risk(target_volatility=.07) ef.portfolio_performance(verbose=1)
Not sure how active they want to be but since they're young and have time on their side, go all indices 2/3 US index: VOO 1/3 World index: VTWAX
Imo a good portfolio for younger folks would be along those lines, but it s rough psychologically to take the drawdowns that will come in time of crisis. One needs to be educated about the stock market to hold through bear markets. A big reason retail trying to do passive investing still manage to significantly underperform the markets is they sell in time of panic and buy back in after it s gone back up some.