Tag Archives: Stocks

How long is long term?

The Budget and You

For many investors – particularly those in retirement – the question ‘how long is long-term?’ could also be translated as ‘I’m getting on a bit, so should I still be investing in the stock market?’. When it comes to systematic investing – that is to say, capturing specific market risks in a disciplined and rules […]

Dangers of Instinctive Investing

You’ve probably read about behavioral finance research. The conclusion is generally the same, no matter what aspect of our decision-making is being probed: the human mind is hard-wired to process information in certain ways which were extremely helpful when the environment contained gazelles (very tasty!) and saber-toothed tigers (extremely dangerous!), but are not so helpful […]

Armchair Experts

As a topic of conversation, investment is like sports. Everyone has an opinion. And the strongest opinions often come from those who spend more time in front of the TV than out on the playing field. Practitioners, meanwhile, are wary of anything labelled a sure thing. Indeed, it’s one of life’s ironies that the people […]

Investment Lesson: 1955 – 2011

Time for reflection… let’s look at the performance of the largest 750 companies listed on the UK stockmarket; FTSE All-Share Index from February 1955 to June 2011. Investors can draw two lessons. First, since 1955, bull markets in the FTSE All-Share Index have lasted longer than bear markets and delivered gains that are disproportionately greater […]

The Mother of Overreactions

The big news in the markets was the markets themselves: on Monday, in the U.S., the S&P 500 fell 79.92 points, losing 6.66% of its value.  The Dow was down 5.55% and the Nasdaq technology index dropped 6.90%.  Globally, the EAFE index, which tracks the overall market moves in the developed nations, fell 3.37%. Until […]