Don’t confuse economic forecasts with investment strategy
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The experts all agree … On the face of it, the “Business Day” section of the “Sydney Morning Herald” of 29 September 2010 was full of valuable insights into the…
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Should past performance affect your willingness to take investment risk?
Past investment performance is seductive It’s a difficult task being a good investor. You’re keen to celebrate when your investments perform well, yet you’re also looking for opportunities to acquire…
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Is there a bond market “bubble”?
Investing in government bonds is attracting a lot of attention Herding or “running with the pack” is one of a number of well documented psychological biases that inhibit our ability…
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Active versus Passive Investing: The “Alpha” Bet
In investment terminology, “alpha” refers to the level of outperformance of a portfolio relative to an appropriate benchmark. Of course, everyone would like to achieve returns in excess of their benchmark. But you’re advised to have a good grasp of the cost and chance of achieving alpha before you decide to chase it.
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Wealth Management: a risky business
Share and property investments are risky … Most people understand that the returns of growth investments (i.e. shares and property) fluctuate considerably. If they didn’t prior to the Global Financial…
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Is your Investment Strategy personalised?
Knowledge of investments isn’t everything The availability of investment news and information has been increasing over time. This has led to an improvement in most people’s understanding of general investment…
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Residential property is not a “fail safe” investment
The arguments in favour of residential property investment appear overwhelming Housing prices remained reasonably firm through the worst of the “Global Financial Crisis” and have risen steadily over recent months.…
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Forecasting the Market – Skill or Luck?
How good is your crystal ball?
We’ve just been through (arguably) the worst share market downturn since 1929. We’ve also experienced a recovery that few predicted was possible at the start of 2009. Why were we not able to predict these events earlier and with more precision?
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Taxes, investment costs and investment returns
High before tax returns may not be best … If you accept the often repeated warning that past investment returns do not provide a guide to future performance, you would…
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Investment Return Volatility – A Potential Wealth Hazard
Investment return volatility is poorly understood Most investors understand that in order to increase their expected future return, they have to accept a higher level of volatility (or variability) in…
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