Inside StockTok, where Gen Z finds helpful — and sometimes dangerous — financial advice

In The Know – October 19, 2020

Millions of videos means millions of differing opinions. And with TikTok’s mysterious, engagement-focused algorithm, information flows freely — and often without a filter. To some veteran financial advisors, like Dejan Ilijevski, that’s a pretty dangerous way to consume knowledge.

“We know, based on decades of academic research and empirical evidence, what works,” Ilijevski, a fiduciary investment advisor at Sabela Capital Markets, told In The Know. “We know the actions that actually improve the odds of success for investors — and most of the advice you see on TikTok is definitely not that.”….CONTINUE READING

Human judgement still king in a world of algorithmic trades

The Trade – October 12, 2020

For Dejan Ilijevski, president at Sabela Capital Markets in Chicago, the pandemic has expanded the opportunities to use algorithms for high-frequency trading (HFT).

“When markets are slow and flat, there are no triggers, no edges, no opportunities for profits,” he explains. “Uncertainty is the main source for volatility, and the context around COVID-19 is all about uncertainty.”…CONTINUE READING.

How To Invest in the S&P 500

NerdWallet / TheStreet / Nasdaq – September 22, 2020

Choosing an index fund or ETF can also help investors avoid — or at least minimize — the behavioral pitfalls from stock-picking, which is a losing strategy, says Dejan Ilijevski, president of Sabela Capital Markets.

Ilijevski cites the May 2018 study by professor Hendrik Bessembinder at Arizona State University, which examined investments in publicly traded U.S. stocks between 1926 and 2016 and found that just over 4% of the companies accounted for the total wealth created.

“Picking those few individual winners is impossible,” Ilijevski says. “Your best bet is to own as much of the market with a fund that tracks the index.”….CONTINUE READING

How To Invest In A Post-COVID-19 World

Minuca Elena, Dr. Wealth – September 30, 2020

Dejan Ilijevski, president of Sabela Capital Markets, explains “Investors are desperate for yield and may be more risk-seeking, susceptible to high-cost schemes, “exclusive” strategies, and financial services salespeople ready to take advantage. Your best bet is a fiduciary advisor who is not paid on commissions or confusing fee structures.”

“Considering the political and economic uncertainty, the best bet post COVID is to rely on a globally diversified portfolio of low-cost index funds. Especially now, stick with low-cost index funds and etfs.”

“Although ESG standards remain unreliable and greenwashing is rampant, legitimate ESG funds have been doing extremely well and are also a great option for investors post-covid.”…CONTINUE READING.