“Objects in the rear-view mirror may appear closer than they are”. Right now, the opposite is true. It feels like a lifetime ago – but it has only been 11 weeks since we were trying to find a way forward in the midst of absolute carnage. As I was writing this post, the S&P 500 …
If you are putting money to work with the objective of maximizing long-term investment returns, there’s only one right answer to the bonds vs stocks equation. The data simply doesn’t lie: over extended periods of time, equities trump fixed income instruments by a wide margin. Go 100% equities, relax, and let them do the heavy …
Bonds vs Stocks: What 30+ Years Of Performance Means For Your Portfolio Read More »
For anyone who is following the financial markets these days, Monday was an eye-opener. For the first time in history, the price of oil has gone into negative territory. At its nadir, a barrel of WTI (West Texas Intermediate, the US benchmark for oil) traded for minus $40. That’s right. If you owned a barrel …
The stock market expansion that followed the financial crisis became known as the most hated bull market ever. Despite the tremendous growth and wealth creation, the share of retail investors in the stock market has actually declined from ~65% before the financial crisis to about 55% a decade later. It makes sense. Back in the …
Even in normal times, a big chunk of my days is spent in conversations with what is sometimes known as “smart money”. On the asset management side, this includes active money managers like Fidelity, Legal & General, Invesco, and many other household names. They often hold large positions in companies that we represent, so an …
What The Smart Money Is Thinking Now – And Why You Can Do Better Read More »
As the markets cratered over the past few weeks, the one message I’ve been giving to anyone who would listen is: DO NOT SELL. I certainly haven’t sold any of my shares. Why would I? If I was happy to buy something at a price of “x”, I should be even happier to get 30% …
Making Money In Times Of Crisis – Lessons From Past Bear Markets Read More »
As recently as two weeks ago, the prevailing macro view was that while the impact of Covid will be severe, the recovery will be V-shaped. That is, a sharp decline would be followed by an equally strong rebound in economic activity and asset prices. Fast forward to today and the likelihood of a V-shaped recession …
Have No Fear – Surviving And Thriving In A Recession Read More »
It’s official. We’ve gone from what seemed like a nasty, yet temporary wobble in the markets to a full-blown crisis. The true scale of the damage to the world economy is unknown so far, but it’s clear the situation is more complex than it appeared at first – and will likely get worse before it …
