{"id":40245,"date":"2013-07-22T14:38:24","date_gmt":"2013-07-22T18:38:24","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=40245"},"modified":"2013-07-22T21:02:13","modified_gmt":"2013-07-23T01:02:13","slug":"3-ways-to-boost-your-investing-iq","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/07\/22\/3-ways-to-boost-your-investing-iq\/","title":{"rendered":"3 Ways to Boost Your Investing IQ"},"content":{"rendered":"

By The Sizemore Letter<\/u><\/a> <\/p>\n

From Covestor<\/a>:<\/p>\n

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A good investing IQ goes hand in hand with strong financial knowledge and decision-making skills. That\u2019s something that the majority of Americans lack, according to the\u00a0latest<\/a>\u00a0nationwide study that seeks to measure the financial capability of U.S. adults.<\/p>\n

The National Financial Capability Study sponsored by the\u00a0FINRA Investor Education Foundation<\/a>\u00a0asked participants five questions that tested their fundamental financial knowledge. They attempted to cover only the basics, such as principles related to risk and diversification, the relationship between bond prices and interest rates, and principles of compound interest and inflation.<\/p>\n

Only 39% of those questioned were able to get the right answer for four or more of the questions.<\/p>\n

\u201cIn other words, the average investor would have a failing grade,\u201d \u00a0says\u00a0Charles Sizemore<\/a>, portfolio manager on the Covestor platform.\u201dThis is very troubling because never before have investors had to take this much responsibility for their own finances. They lack the basic knowledge they need to invest and manage their financial lives.\u201d<\/strong><\/p>\n

…<\/p>\n

In his\u00a0latest Google Hangout interview<\/a>, Sizemore says to read these three things if you want to start boosting your investment IQ:<\/p>\n

1)\u00a0\u201cFinancial Times\u201d<\/a>.<\/strong> He calls it the \u201cbest newspaper available\u201d for understanding how current events relate to your investments. It\u2019s a daily read, he says.<\/p>\n

2)\u00a0\u201cFooled by Randomness<\/a>\u201d\u00a0<\/strong>by Nassim Nicholas Taleb. It\u2019s a book that deals with the frailty of human knowledge as it relates to the markets, and how luck is often mistaken for skill.<\/p>\n

3) Go to sites including\u00a0www.covestor.com<\/a><\/strong>\u00a0to track what other investors are doing in the markets and to learn about the reasons behind their moves.<\/p>\n

This replay represents statements made live on July 18, 2013. All opinions included in this material are as of July 18, 2013 and are subject to change. The opinions and views expressed herein are of the portfolio manager and may differ from other managers, or the firm as a whole.<\/em><\/p>\n<\/blockquote>\n

SUBSCRIBE\u00a0<\/b><\/a>to\u00a0Sizemore Insights<\/em>\u00a0via e-mail today.<\/p>\n

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