Another episode of the beginner investor series:

We discuss three terms; strategic asset allocation, tactical asset allocation & core-satellite strategy

This topic was brought on by the fact that there are now 5 times the amount of retail investors as there was just over a year ago. This is likely brought on by the covid drop, and quick recovery soon after. This has also led to many twitter personalities and trading groups popping up promising people to help them conquer the markets. I am issuing this episode as a reminder to all, 97% of traders do not beat the market and the vast majority of them do not make money. In times when money comes easy it is easy to lose sight of these facts, but it goes back to the old adage 'be fearful when people are greedy, and greedy when people are fearful'. I see a whole lot of greed on the internet these days.

The strategic asset management and tactical asset management terms are simple to understand, and can help a new investor when trying to set up a portfolio. These are basic portfolio management and construction terms, and an understanding of these fundamentals can go a long way for a new investor. 

The core-satellite strategy is a strategy that allows you to still participate in the exciting world of trading, and follow along with these twitter personalities without risking your retirement or your kid's education. Put simply, it is to keep your core portfolio diverse and well set up, while allowing yourself some 'floater funds' or 'satellites' to take pot shots at hot stocks you see on the internet. Best of both worlds

Hope everyone enjoys this episode!

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