Personal Wealth

Newsflash: Market Gurus Are Guessing

It doesn’t take an expert to tell you the flip of a fair coin gives you 50/50 odds, heads or tails. What if I told you most market gurus fare even worse than a coin flip when it comes to making accurate financial forecasts? Would you continue to pay attention to their “expert” calls?

Behavioural Finance
Family Playing Board Games Snakes And Ladders

Snakes and Ladders

I visited my sister in the UK last summer and spent time with my young nieces and nephews. One evening, we found a compendium of board games and I introduced my five-year-old nephew to Snakes and Ladders. The rules were explained, although not completely absorbed, and off we started.

Personal Wealth
Your Investing Confuses Academics

Your Investing Confuses Academics

Academics are fascinated by the way you invest. You shouldn’t be flattered by their interest. They engage in sophisticated analysis in an effort to explain why you invest in a way that so irrational. The underlying premise of their studies is that your investing behavior makes no sense.

Personal Wealth
Bitcoin Desk Cellphone by david shares on Unsplash

Bitcoin in Perspective

The rapid rise in price of Bitcoin has generated intense speculation about the future of cryptocurrencies. It’s instructive to take a closer look at some of the commentary about the future price of Bitcoin, because it tells you a lot about speculation, investing and financial journalism.

Behavioural Finance
Hidden Danger

A Hidden Danger Few Investors Understand

Over the years, I’ve written extensively on how to invest intelligently and responsibly, based on sound, peer-reviewed evidence. Together with many others, I’ve extolled the virtues of low management fee index funds, global diversification, keeping costs and fees as low as possible and avoiding or deferring taxes.

Personal Wealth
Businessman Standing Concrete Pillar by clem onojeghuo on unsplash

Why Is It So Hard To Beat the Market?

The data is in and, for fund managers who are still trying to “beat” the market, the numbers are still not on their side. As talented as active players often are at slicing and dicing the data, and as mightily as they may try, there’s considerable evidence that passive players continue to have the last laugh. Why is that? As usual, it has a lot to do with common sense.

Behavioural Finance
Behavioural Biases

A Hidden Bias Is Killing Your Returns

Until recently, it was frustrating trying to convince you to become an evidence-based investor. Part of the problem was persuading you that brokers and self-appointed stock market gurus are emperors with no clothes. There’s no credible evidence anyone has the expertise to reliably and consistently pick outperforming stocks, tell you when to get in and out of the market or pick the next “hot” mutual fund manager.