Investing

  The vast majority of the world’s investors prefer to hold stock in one of the many index funds available nowadays, which simply track the performance of a particular index by owning almost all of the shares listed on the index. This is considered by many to be the smartest and safest investment choice, since the efficient market hypothesis posits that there is no way for investors to consistently beat the market. However, there is a way to be smart…

With the advent of new communication technologies, trading in stocks has proliferated worldwide, and sped up to such an extent that it seems as though only computer algorithms are able to follow the pace of the market nowadays. With these new technologies, the line between investing and speculation has become blurred, though the two were clearly delineated by John Maynard Keynes as early as the first half of the 20th century. Nowadays, however, there are at least four distinct types…