Questioning convention can be both challenging and lonely. Group think is much easier. Popular thinking doesn’t require you to think at all. You just nod and agree with the opinion of the day.
Once in the trade, the harder part is knowing what to do next. Not just setting a profit target, but what to do if you get it wrong. That’s where stop losses come into play.
You probably still remember the market correction from back in February. Funnily enough though what rattled the markets back then wasn’t bad news…but good news.
Awash with cheap funding, investors worldwide are running the ruler over Australian companies. The further the Aussie dollar falls, the cheaper any target company becomes.
The US economy created 223,000 jobs in May, US consumer spending jumped 0.6% and car sales are humming too. But if things are really that good, why has it been five months since US stocks…
You would be surprised how many people invest based on recent past performance, projecting the present into the future. Economists even have a name for it: extrapolation bias.
Markets cannot completely collapse, whilst everyone is expecting one. Markets just don’t work like that. Markets can only collapse when everyone is fully invested and there’s only blue skies ahead.
There are no two ways about it: when this bubble finally bursts for good, and wealth is destroyed for a long time, it will be the richest that lose the most!
As interest rates bottomed in the US, and started to head higher, some of this global money has headed back home. And that will pull more money back to the US and out of Australian…
Why do we continue to listen to so-called ‘economic experts’ telling us a collapse is imminent? The world is not going to collapse any time soon.
That’s where income investing comes into play. Shareholders continue to reap the benefit of the dividends these companies pay, even if their share price is struggling for growth.
Small investors look for big, risky gains. The big money aims for small, safe ones. As long as the big money could earn more from S&P dividend yields than from short-term Treasury yields, it’s stuck…
Buying stocks has never been easier, cheaper and more accessible. Companies like Robinhood, Stockpile and Stash are removing the toll booths and all the barriers.
Investing in loss-making companies like Snap Inc. with no clear path to profitability is fraught with uncertainty and risk. And yet, they’re often the most in demand stocks on the market. But why?
Years of low interest rates and cheap money have pushed up asset prices and have increased debt around the world. As you can see, global debt has grown from US$87 trillion in 2000 to US$199…