It is a shameful indictment of the investment industry that too many mutual fund managers charge fees for active management when in fact their stock selection is replicating a given index against which they are benchmarked, and their performance judged. In a move to pressure investment management companies to make their investment objectives and benchmarks […]
As I write, today Wednesday 6th March, is the 10th anniversary of the financial crash when the stock markets around the world crashed. The S&P 500, the index of the top 500 publicly traded companies by capitalisation in the USA plummeted to $666 giving back 57% of its value. This was the bottom of a […]
Many would-be investors fear the stock market. Equally, many do not adhere to the fundamental principle of identifying capital for savings and capital for investment. The irrational emotions of fear and euphoria are very real when applied to the stock market. The stock market drops far more quickly than it rises. The stock market in […]
The passing of the legendary investor John (Jack) Bogle recently at the age of 89 has stirred many writers in financial and nonfinancial papers to comment on his extraordinary achievements. His vision as a young man, following a thesis for his degree at Princeton University way back in 1951, led him to produce the first […]
When are investors going to wake up to the relentless rules of humble arithmetic and recognise that costs matter when investing? Simple arithmetic dictates that the generation of profits by investment companies requires charging fees above the basic cost of providing investment services. As investors we can only guarantee what we will pay in cost […]
History may not repeat itself, but it rhymes.” Mark Twain. Mark Twain. During October investors in stock and bond markets around the world saw declines in their portfolios, therefore a look at market history may be useful. So far this year, the US stock market has been climbing, fuelled by tax cuts, historic low unemployment and […]
I was discussing this week with one of my business associates the relative attributes of investment advice, exploring the difference between several labels used commonly in the industry, the result of “marketing” departments’ endeavour to sell more products designed to make money for the producer. The term Wealth Manager is increasingly slipping into the investment […]
