Investment Strategy
Investment Strategy
markets and human nature cycles
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.
Three Sectors That Could Boom in 2018
sectors set to boom in 2018With the Trump tax cuts likely to prop up confidence and the US economy, I think you should have at least a part of your portfolio in some speculative sectors. If the good times are going to continue to roll, you want to make sure you’re making hay while the sun still shines.
What the Great Investors Can Teach You
investingYou probably know the old saying, ‘There’s more than one way to skin a cat.’ It simply means there is more than one way to do something. Nowhere is that truer than in the world of investing. Don’t think there’s only one way to create wealth. There are many.
When the Rumour of US Tax Cuts Becomes Fact
US tax cutsThe promise of tax cuts and its impact on company earnings continues to drive US stocks relentlessly higher. While that’s well known, the question to ask is whether the tax cuts are already priced in. Are investors now being too optimistic about the impact of lower tax rates on company earnings?
Doubt
stock marketWhen thinking about your longer-term strategy, the first question you should ask is, are we in a bull or bear market? At the start of the year, I was pretty confident we were in an ongoing bull market. Now I’m not so sure.
Do You Really Want to Be Warren Buffett?
bitcoin and warren buffettThe market is an emotional beast of a thing. What’s the secret behind the success of everyone’s favourite investor, Warren Buffett? I would say his extreme rationality. Buffett has a unique ability to stay rational in highly emotional situations.
A New Dot Com Bubble?
dot com bubbleLike the dot com boom, all sorts of innovative cryptocurrencies have sprung up, or are about to. Those that smugly declare cryptocurrencies will end up in a new dot com crash miss the point. But there are certainly lessons you can glean from the dot com era.
An Investor’s Major Dilemma in Today’s Markets
investor's dilemmaYou may have heard of the ‘prisoner’s dilemma’. It’s a standard example in a branch of economics called game theory. Well nowadays, the classical models of economics taught in universities have proven to be poor models of reality. Which brings us to the investor’s dilemma today.