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So, What Is AI Money? AI Money isn’t just about robots taking jobs or ChatGPT writing your emails. It’s about leveraging this massive technological shift to create new income, multiply your time, and expand your financial potential—without selling your soul or burning out in the process. It’s not a “get rich quick” scheme.It’s a mindset shift. It’s a toolkit. It’s a movement. And in my book, AI Money: How to Use Artificial Intelligence to Supercharge Your Personal Finance

Definition of Risk Parity Risk Parity is an investment strategy that builds a portfolio by balancing risk, not just dollars. Instead of allocating money based on how much you invest in each asset, risk parity focuses on how much volatility each asset contributes to the overall portfolio. In plain English: it’s not about how much money you put in—it’s about how much stress each investment puts on your portfolio.

If you’ve ever felt torn between “playing it safe” and “trying to grow faster,” the Core-Satellite Portfolio might be exactly what you’re looking for. It’s a smart, flexible investing framework that blends stability with opportunity—without turning your portfolio into a full-time hobby. What Is a Core-Satellite Portfolio? A Core-Satellite Portfolio is an investment strategy that divides your portfolio into two main parts...

If you’ve ever felt like investing advice changes with every headline, Strategic Asset Allocation is the calming counterweight. Strategic Asset Allocation is the long-term framework for how your money is divided among major asset classes—typically stocks, bonds, cash, and sometimes real estate or alternatives—based on your goals, time horizon, and risk tolerance. It’s the “set the course and stick to it” approach to investing.

Tactical Asset Allocation is a fancy-sounding term for something pretty practical: temporarily adjusting how your money is invested based on current market conditions. Think of it as steering the ship—not rebuilding it. The Simple Definition of Tactical Asset Allocation Tactical Asset Allocation (TAA) is an investment strategy where you make short-term adjustments to your portfolio’s asset mix (stocks, bonds, cash, real estate, etc.) to take advantage of market opportuniti

Momentum Strategy is a simple but powerful investing concept built on one core idea:assets that have been performing well tend to keep performing well—at least for a period of time. Instead of trying to predict what might do well next, a momentum strategy focuses on what’s already working and rides that trend until the momentum fades. This approach isn’t flashy. It’s disciplined. And when used wisely, it can help investors avoid emotional decision-making and align their mon

Definition of Contrarian Strategy A Contrarian Strategy is an approach to investing (and decision-making) where you intentionally go against the prevailing market sentiment. When most people are optimistic and buying aggressively, contrarians get cautious. When most people are fearful and selling, contrarians start looking for opportunities. At its core, a contrarian strategy assumes that markets often overreact—both on the upside and the downside...

A Simple Definition of Seasonal Investing Seasonal Investing refers to investing strategies that take advantage of recurring calendar-based trends in the financial markets. These trends can be monthly, quarterly, or tied to specific parts of the year — like holidays, earnings seasons, or even weather patterns. A classic example is the saying, “Sell in May and go away,” which reflects the historical tendency for stocks to underperform during the summer months...

Definition of Sector Rotation Sector Rotation is an investment strategy that involves shifting money between different sectors of the economy—such as technology, healthcare, energy, or consumer goods—based on where we are in the economic or market cycle. The idea is simple: different sectors tend to perform better at different times. In other words, not all parts of the market lead at the same time. Smart investors pay attention to where the momentum is moving next...

Definition of Relative Strength Relative Strength is a way to compare the performance of one investment to another—most commonly against the overall market or a benchmark like the S&P 500. Instead of asking, “Is this investment going up?” relative strength asks the better question: “Is this investment performing better or worse than something else?” That subtle shift matters more than most people realize. An investment can be rising in price and still be a poor performer..

Definition of Momentum In finance and investing, momentum refers to the tendency of an asset’s price, earnings, or financial performance to continue moving in the same direction for a period of time. Simply put: what’s been working lately often keeps working—at least for a while. Momentum is rooted in human behavior. Investors don’t change their minds overnight. Confidence builds gradually...

The Definition of Mean Reversion Mean Reversion is the concept that over time, prices, returns, or performance tend to move back toward their long-term average—or “mean.” In plain English: What goes up too far usually comes back down.What goes down too far often comes back up. Markets don’t move in straight lines forever. They swing. They overshoot. Then they correct.

What Is Window Dressing? Window dressing is the practice of making financial statements, investment portfolios, or business results look better than they really are—usually right before they’re reviewed by outsiders. It’s not always illegal. But it’s often misleading.

What Is a Santa Claus Rally? A Santa Claus Rally refers to the historical tendency for the stock market to rise during the final trading days of December and the first couple of trading days in January. Traditionally, this period includes the last five trading days of the year and the first two trading days of the new year. In plain English: stocks often get a late-December boost—right when people are hanging lights, wrapping gifts, and eating one too many cookies.

Definition of Halloween Effect The Halloween Effect (sometimes called Sell in May and Go Away) is a market anomaly that suggests stocks tend to perform better during the six-month period from November through April than they do from May through October. In plain English: historically speaking, the market has often delivered stronger returns in the “winter” months than in the “summer” months.

Definition of January Effect The January Effect is a market pattern where stocks—especially small-cap stocks—tend to perform better in January than in other months. The theory suggests that prices rise early in the year after investors rebalance portfolios, reinvest bonuses, or buy back stocks they sold in December. In plain English: January often gets a little more bullish than average.

What Is Bounded Rationality? Bounded rationality is the idea that people make decisions using limited information, limited time, and limited mental energy. Instead of finding the best possible decision, we settle for a decision that is “good enough.” The term was popularized by economist Herbert Simon, and it explains why real-world financial decisions often look messy, emotional, and inconsistent—because they are. In short: We don’t optimize. We simplify.

Definition of Hot Hand Fallacy The Hot Hand Fallacy is the belief that because someone has experienced success repeatedly in the recent past, they are more likely to continue succeeding in the future—even when outcomes are largely driven by chance. In simple terms: “They’re on a roll, so they can’t miss.”In finance, that mindset can quietly drain your wallet.

Definition of Gambler's Fallacy Gambler’s Fallacy is the mistaken belief that past random events influence future outcomes—even when each event is independent. In plain English: just because something has happened a lot lately doesn’t mean it’s “due” to change. This thinking shows up most famously in casinos, but it quietly sneaks into everyday financial decisions far more often than people realize.

Definition of Sunk Cost Fallacy The sunk cost fallacy is the tendency to continue investing time, money, or effort into something simply because you’ve already invested in it—even when walking away would be the smarter financial decision. A “sunk cost” is a cost that’s already been paid and cannot be recovered. The fallacy happens when past costs influence future decisions. In plain English: “I’ve already spent so much, I can’t quit now.”