Over the last couple of decades, investing has become an essential part of personal finance, with the rise of digital platforms increasing access to financial markets for all. Gone are the days when stock markets were exclusive to only high-net-worth individuals and professional analysts, as now individuals from all walks of life can participate in the world of investing with the click of a button. However, for those new to the game, the sheer complexity and array of options can be daunting. Service providers often use unfamiliar jargon and formulas when discussing investment opportunities, making markets appear impenetrable to beginners.
To counter this, we have put together a guide that aims to demystify the investing world and provide our readers with a clear understanding of the principles, strategies, and best practices necessary to navigate modern financial markets. Along the way, we will also introduce Sad Rabbit, our investment research platform designed to empower private investors with professional-grade tools and insights, showing you exactly how to use the platform to get started on your investing journey.
What Do We Mean by Investing?
In simple terms, investing is the process of allocating your assets with the aim of generating a return over time. This return can take various forms, such as income in the form of dividends from stocks and interest from bonds, or capital appreciation, which is the increase in the value of an asset over time. Investing should be distinguished from saving, as saving typically involves setting aside a portion of your income for future use, often in a low-risk, easily accessible account.
Investing requires a clear understanding of an individual’s financial goals, risk tolerance, and time horizon before starting. It involves selecting from diverse assets, such as equities (which represent ownership in a company), bonds (loans to a company or government), real estate (including diversified pools of properties like houses, apartments, and commercial buildings), and alternative investments (covering commodities, hedge funds, or private equity). Each of these asset classes has distinct characteristics, benefits, and risks, making them more suitable for certain investors and less suitable for others.
What Are the Benefits of Investing?
So, why invest? The answer lies in the considerable financial benefits that investing can deliver:
Wealth creation: Investing offers the potential to grow your wealth over time, providing a means to achieve long-term financial goals, such as retirement or purchasing a property.
Inflation protection: By investing in assets that historically perform well in inflationary environments, individuals can protect their money's purchasing power and maintain their living standards over the years.
Achieving financial goals: Investing can help you achieve specific economic objectives, such as funding a change in lifestyle or securing a comfortable retirement.
Introducing Econoview
Econoview is an investment research platform with a single defining goal: to democratise access to financial markets by providing access to high-quality investment research and market data that has traditionally only been accessible to professional investors. This exclusivity has left private investors at a distinct disadvantage, unable to compete on a level playing field. Our mission is to change this by offering institutional-grade tools and insights at an accessible price.
We want to empower private investors to take control of their financial futures by providing the same calibre of data and analysis used by professionals but in a way that is accessible and actionable for everyone. Whether you're a seasoned investor or just starting your journey, Econoview aims to simplify the complexities of investing while equipping you with the tools needed to make informed investment decisions.
How Econoview Works
Our platform is designed to allow individuals to take a hands-on role in managing their investments, offering everything from professional-grade market data and economic analysis to portfolio management strategies. By leveraging publicly available economic data, Econoview transforms raw information into actionable insights for more effective investment decision-making.
Instead of manually sifting through endless streams of financial news, Econoview consolidates key data points and presents them intuitively. This allows our users to focus on what matters most: building and managing their portfolios with confidence. We want to save private investors time while enhancing their ability to make sound investment choices that meet their specific financial goals and risk tolerances.
How to Use Econoview to Start Investing
Navigating an investment platform can feel daunting for new investors, so we have put together a short step-by-step guide on using Econoview for the first time:
Explore Asset Class Views: Begin your journey by visiting the platform’s summary of asset class views. This section aggregates ratings from leading financial institutions and analysts, offering a snapshot of where professional investors are focusing their capital. Each primary asset class is rated based on its favorability, giving you an immediate sense of which market areas are currently most attractive.
Review the Model Portfolio: Using insights from the asset class views, Sad Rabbit has constructed a globally diversified model portfolio. This portfolio is a model allocation that reflects current market sentiment and provides exposure across major asset classes and regions. Accompanied by expected return and risk ratings, it helps you to see how this portfolio’s risk-return weighting shifts as the allocation automatically updates.
Build Your Portfolio with Fund Analysis: Once you’re ready to start building your portfolio, turn to Sad Rabbit’s fund analysis tool. This feature offers a curated shortlist of investment funds that align with the sectors in the model portfolio. Whether you prioritise active management, passive strategies, or ESG considerations, the tool provides a selection of funds to tailor your portfolio to your unique needs.
Stay Informed with News & Research: Leverage the News & Research section to stay up-to-date with the latest investment insights and market updates. This section can be used to get an update on key events, such as policy moves and economic indicators that can significantly impact market performance. We analyse how global markets respond to economic factors, helping you understand trends and adjust your investment approach accordingly.
Econoview represents more than just an investment research platform, our aim is to break down the existing barriers to financial markets. For those who have felt excluded from sophisticated investment strategies or overwhelmed by market complexities, our platform equips you with everything needed to take control of your financial future.
Key Features of the Sad Rabbit Platform
Due to the complexity of today’s financial landscape, many private investors often find themselves at a disadvantage, lacking access to the sophisticated tools and insights available to institutions and professional investors. We believe that the Econoview platform can go a long way in addressing some of these disadvantages by offering professional-grade features to all investors, regardless of their experience or portfolio size. Below are two features that make Econoview a game-changer:
Asset Class Views: One of the most challenging tasks for a private investor is deciding which areas of the market to invest in and when. To simplify this process, we monitor all major asset classes and rate them using analyst views from across the industry. Each asset class receives a favorability rating based on views from professional analysts, offering our users a quick snapshot of current market sentiment. Econoview's proprietary model also calculates expected returns for each asset class over a ten-year horizon, providing a strategic outlook that helps investors align their portfolios with their financial goals.
Model Portfolio and Fund Analysis
Model Portfolio: Built on the insights from Asset Class Views, our dynamic model portfolio reflects current market sentiment and is globally diversified. It automatically adjusts its underlying asset allocation based on the latest ratings, helping investors see how professional market participants are positioning themselves across major asset classes and regions.
Fund Analysis: Bridging the gap between the model portfolio and an actual investment portfolio, our Fund Analysis tool offers a curated list of individual funds corresponding to each sector and region in the model portfolio. This feature includes active funds, passive funds, ETFs, and ESG-focused options, allowing you to build a portfolio that aligns with Sad Rabbit’s overarching strategy while catering to your unique preferences.
What Are We Going to Cover in the Rest of the Series?
Beyond simply introducing the concept of investing and showing you how Econoview works, this guide will take you on an introductory trip through the investing world by covering the essential concepts, strategies, opportunities, and best practices necessary to get started. We have structured the series into 16 manageable chapters, each focusing on a specific aspect of investing or personal finance. These chapters will range from setting investment goals and understanding risk to exploring more advanced investing concepts and portfolio management.
We have drawn on the expertise of seasoned investment professionals and followed industry-standard guidance to ensure that key concepts are illustrated using real-world examples and accompanied by practical steps. Our goal is to help you gain the knowledge and confidence to take control of your financial future by making informed investment decisions that align with your unique goals and risk appetite.
Conclusion
Investing is a powerful tool for building wealth, protecting against inflation, and achieving specific financial milestones. Yet it can feel intimidating for newcomers, particularly when faced with the complexities of modern financial markets. We believe that platforms like Sad Rabbit can play a vital role in breaking down these barriers, giving all investors access to resources, research, and insights once reserved for institutional participants.
By understanding the core principles of investing, familiarising yourself with various asset classes, and leveraging the tools offered by Econoview, you can begin constructing a portfolio tailored to your financial objectives and risk tolerance. We invite you to explore the rest of this series, where we’ll delve deeper into each step of the investment process, offering guidance to help you navigate the markets with clarity and confidence.