Tag: investors

Over the Hedge

A recent press article said that with major risk assets looking “fully valued”, it was time to seek out alternative investments such as hedge funds. But those thinking of making that shift might want to look before they leap. According to consulting firm McKinsey and Co, hedge funds and other “alternative” investments will command up […]

Investors, Connecting the Dots

Human beings love stories. But this innate tendency can lead us to imagine connections between events where none really exist. For financial journalists, this is a virtual job requirement. For investors, it can be a disaster. “The Australian dollar rose today after Westpac Bank dropped its forecast of further central bank interest rate cuts this […]

Investor Rocket Science

When the media raises the subject of beating the market through astute stock picking, the name ‘Warren Buffett’ is usually cited. But what does this legendary investor actually say about the smart way to invest? Buffett is considered to have such a track record of picking stock winners and avoiding losers that his annual letter […]

Future Testing

Much financial news purports to be about the future but is really just an account of the past. As a result, many investors project what has already happened onto an imagined future. There’s another way of framing this problem. It’s understandable that investors, with the help of a necessarily short-term-focused media, will tend to focus […]

The Golden Ticket

In a popular children’s story, the young hero pins all his hopes on finding one of a handful of ‘golden tickets’ hidden among millions of candy bars. It seems many people approach investing the same way. The notion that the path to long-term wealth is in locating secret and previously undiscovered treasures in the global […]

Riding the Emerging Markets Tiger

Many investors fell for emerging markets in recent years when they delivered sizeable returns. More recently, the associated risk has reasserted itself and the infatuation has faded. What’s the right approach? A major theme in media commentary since the turn of the century has been the prospect of a gradual changing of the baton in […]