John Dow

Most investors categorize bonds as “safe” and stocks as “risky.” This binary view often overlooks the specific mechanics of the corporate bond market, where the risk isn’t always about a company going bankrupt. Instead, the true risk often lies in the “spread”—the extra yield investors demand over risk-free government Treasuries. In a stable economy, this […]

Bond markets often appear counterintuitive. When interest rates rise, investors might expect fixed-income assets to become more attractive. Instead, bond prices typically fall, creating a period of volatility that can catch many by surprise. The year 2022 provided a historic case study for this dynamic. As the Federal Reserve aggressively hiked the benchmark rate from

Stock splits, share buybacks, and dividends are often treated as signals. A split is seen as bullish. A buyback as management confidence. A dividend as stability. In reality, none of these actions automatically creates value. They change how value is distributed, perceived, or packaged. What matters is not the action itself, but the context in

Earnings season confuses many investors. A company reports higher revenue, rising profits, and upbeat guidance. Headlines are positive. Then the stock drops. This outcome feels illogical. If results are good, why would prices fall? The answer is that stock prices do not react to results. They react to expectations. Earnings reports are not about what

Most retail investors believe the market is hard to beat because it is unpredictable. In reality, the market is hard to beat because investors consistently make the same mistakes. The gap between market returns and retail investor returns has been measured repeatedly. It is not small, and it persists across decades, regions, and asset classes.

Market orders are popular because they feel simple. You click buy or sell, and the trade happens immediately. For many beginners, that feels like the safest option. No waiting. No guessing. No missed trades. This convenience has a cost. That cost rarely shows up as a visible fee. It appears in execution quality, price slippage,

Liquidity sounds like an abstract concept. Many investors assume it only matters to large institutions or professional traders. In reality, liquidity affects almost every trade an individual investor makes, often in ways that are invisible at first. Liquidity determines how easily you can buy or sell an asset without affecting its price. When liquidity is

Most investors choose ETFs based on cost, index, or past performance. Very few look at structure. Physical and synthetic ETFs may track the same index, but they work very differently behind the scenes. Those differences rarely matter in calm markets. They matter during stress, regulation changes, or when something breaks. Understanding ETF structure is not

ETF closures often worry beginners. An ETF disappears, trading stops, and investors fear they have lost their money. In reality, ETF closures are usually far less dramatic. They are common, predictable, and rarely caused by sudden losses. Understanding why ETFs fail or get closed helps investors separate real risk from noise. Most ETFs do not

Bond ETFs are widely considered the safe part of a portfolio. They are often recommended to beginners as a stabilizer, an income source, and a counterweight to stock market volatility. For many investors, that perception broke in 2022. Bond ETFs posted losses that rivaled equity drawdowns. Funds designed to reduce risk fell 10%, 20%, and