"Active management is little more than a gigantic con game." Ron Ross, Ph.D We all want to be better than average, it makes us feel smarter. Who hasn't been enticed by a big glossy ad from a fund manager showing their amazing outperformance over the previous 1 or 3 or whatever number of years. If only … Continue reading 5 Reasons to Give Up On Active Investing
After another tough year for sharemarket investors, 2012 has started on a better note. We’ve seen more positive data from the US and China however concerns remain over the state of the European debt crisis. In Australia corporate earnings have been reasonably good although some sectors such as discretionary retail have struggled. Australian shares are offering … Continue reading A Positive Start to the Year
Well it's the time of year to be guessing what might happen in the next 12 months. There are tips on what's in store for technology, the grand final winners and of course the sharemarket. The major newspapers and investment magazines contain various predictions for where the ASX will finish 2012. But how useful is it? … Continue reading Fearless Forecasts for 2012
In simple terms, Price is what you pay for something and Value is what it's worth. If you think about a bike (yes I'm a bit obsessed) the Price might be $1,500 but the real Value is the enjoyment and improvement in fitness it can provide. The same definition of Price and Value is applicable … Continue reading The Difference between Price and Value
I was asked by Jane, a client of mine today "where is the best place to invest $100,000 if I need income?. I'm thinking about shares but given everything I've been hearing in the news lately, maybe I'm better off with my money in the bank". It's a great question and the answer is relevant … Continue reading Where to Invest for Income?
In the US overnight the Dow jumped almost 4% to finish back above 11,000 points. This came after a Federal Reserve announcement that its benchmark interest rate will remain near zero percent until 2013. The Australian sharemarket closed up on Tuesday afternoon by just over one percent after spending most of the day in the red. Thoughts … Continue reading Further Market Update
We have spoken to leading asset consultant, Russell Investments, who continue to monitor the economic situation and they have provided us with the following information. Market Action A gloomy global economic outlook sent investors on a mass exodus out of risky markets Thursday and into the refuge ofUSgovernment debt, sending yields to yet another round … Continue reading Market Update