About Greg Canavan

Money Morning Australia

Greg Canavan is a Feature Editor at Money Morning and Head of Research at Port Phillip Publishing.

He likes to promote a seemingly weird investment philosophy based on the old adage that ‘ignorance is bliss’.

That is, investing in the Information Age means you have all the information you need at your fingertips. But how useful is this information? Much of it is noise and serves to confuse, rather than inform, investors.

And, through the process of confirmation bias, you tend to read what you already agree with. As a result, you often only think you know that you know what is going on. But, the fact is, you really don’t know. No one does. The world is far too complex to understand.

When you accept this, your newfound ignorance becomes a formidable investment weapon. That’s because you’re not a slave to your emotions and biases.

Greg puts this philosophy into action as the Editor of Crisis & Opportunity. As the name suggests, Greg sees opportunity in a crisis. To find the opportunities, he uses a process called the ‘Fusion Method’, which combines traditional valuation techniques with charting analysis.

Read correctly, a chart contains all the information you need. It contains no opinions or emotion. Combine that with traditional stock analysis and you have a robust stock-selection strategy.

With Greg’s help, you can implement a long-term wealth-building strategy into your financial planning, be better prepared for the financial challenges ahead, and stop making the basic, costly mistakes that most private investors do every time they buy a stock.

To find out more about Greg’s investing style and his financial worldview, take out a free subscription to Money Morning here.

And to discover more about Greg’s ‘ignorance is bliss’ investment strategy and the Fusion Method of investing, take out a 30-day trial to his value investing service Crisis & Opportunity here.

Official websites and financial e-letters Greg writes for:

Bulls Keep Charging in US Market

US market continues to chargeOvernight, the main US indices all traded higher. No one really knows why. But stocks are going up, and people just want to buy them before they go up even more. It certainly feels like a crowd mentality on Wall Street right now. The bulls are clearly in control.

The Stocks to Own for a Correction

stocks to ownDuring a correction, sentiment changes. Money flows out of what’s hot and looks for ‘relative value’. This is why previously unloved stocks tend to perform better in a correction. So having a few of these type of stocks in your portfolio wouldn’t be such a bad thing right now...

Is This the Bitcoin Bubble Bursting?

bitcoin bubbleThe price at time of writing is US$11,098. In my view, the price is breaking down. The trend is still favourable, and you could argue that bitcoin is just correcting and consolidating its big recent move. In fact, if you’re financially and emotionally invested in it, I’m guessing that’s the story you’re telling yourself.

Central Banks Still Behind the Curve

Central banks still behind the curveRight now, pass the cash parcel is in full swing, and central banks are only very timidly trying to reduce the size of the parcel. That’s basically why you’ve seen the US stock market rise unimpeded for the past two years. Central banks are behind the curve. There is too much cash in the system given the positive investor psychology that is unfolding.

Why the Odds Favour a Market Correction

market correctionTax cuts, rising inflation, a weaker US dollar, strong economic growth…these are all reasons for the markets’ strong rally right now. While you’d have to think nearly all of these positives are priced in, the market just keeps marching higher. Prices have recently gone vertical. That’s not sustainable.

The Computers Are in Charge of Investment Decisions

investing and computer analysing the marketsComputers don’t worry about rationale. They just do what they’re programmed to do, which eventually exacerbates the prevailing trends. But don’t forget, humans program the computers. Human nature is behind all market cycles. It’s just that this cycle is being helped along by the desire to make gains based on unemotional computer generated decisions.

The Cycle of Markets and Human Nature

markets and human nature cyclesWhile you never know what the future holds, you can plan and prepare for more likely outcomes than others. That is, you can try and increase your probability of being right. So starting the year with an expectation that the market could endure a correction of 10–20% at some stage is, I think, a sound and reasonable expectation.

Weighing the Odds for the Markets in 2018

markets 2018 outlookAssessing the future is all about weighing up the odds. We can never be sure of how the future will unfold. So I talk in probabilities, never in certainties. With interest rates rising in the US, and with the post-2009 economic expansion being one of the longest on record, there is an increasing probability that the business cycle will soon start to turn down.

Watch this Crucial Market Reaction

market reaction to the US tax cutsThe difference between US and Aussie companies and investors can be broken down as simple as this. The US is more strategic, whereas the Aussie market has a much greater focus on value. I do think US stocks are stretched and vulnerable to a short term correction. And as I said yesterday, that correction could come about as soon as the US tax cut rumour becomes fact.