Our minds have strange ways of tricking us with numbers, and this is never truer than when it comes to investment fees over the long term.
I’ve always been good at math, but I didn’t always realise [….]
The importance of an all weather plan
Why are stocks not going down?
Short term investment losses are normal
Buy and hold investing for the win
Investing is only gambling if you are doing it wrong
There are a group of people that believe investing in the share market is gambling. This opinion is formed by the fact that companies go bust and markets can drop by 30, 40, 50% or more in any given year. This is all true. It happens.
But good news happens far more frequently than bad news when it comes to the share market, as is evidenced by […..]
Why do investors make poor decisions in down markets?
Don't miss out on the good times
The markets are efficient until they are not
Down markets need larger returns to return to the starting point
Many of us are too heavily invested in shares, but won’t realise it until it’s too late. We will get scared and panic sell. A common reason for this surprise reaction is our inability to perform basic maths.
A common miscalculation is that if stocks go down 30% then that is fine. They only need to go back up 30% and I’ll be back to break even. This isn’t […..]
It's simple. I'll just buy back in when the markets recover
How to deal with a volatile share market
Investing over returns
I often see new investors chasing returns from their investments, either taking on more risk than comfortable with, or not getting good returns for the level of risk they are taking on.
I think there is too much focus on returns.
How much someone ends up with in their investments account is a combination of two things […..]
Should I sell my shares?
Hot stocks for the new year
For the last three years, the NZ Herald has asked approximately seven investment firms for their stocks predictions for the year ahead. Each firm picks five companies they think will perform the best and the Herald publishes their picks. Here is a link to the 2019 picks.
So, how did they do […..]
Did your fund manager win this year? Who cares?
Why Sharesies is no good for beginners
A recession is coming
Hold on to your hats people, an economic recession is coming. Unemployment will rise. House prices will fall. Stock markets will crash.
The results of an economic recession can be devastating. Especially to those who have yet to experience one. The last one was in 2007-08.
That means there are a whole lot of people under the age of 35 that may have not experienced a recession in their working (earning income) lifetime […..]
Lowest cost index funds are not always the best
Stock index funds are all the rage these days. They occupy about 20% of the global market and this amount is increasing every year. The main driver of the conversion of investors from active to passive stems from the fact that many active funds (after fees) are delivering worse results than passive index funds.[…..]
Index fund returns are far from average
Index fund investing can offer good results for two reasons. Low costs can save you hundreds of thousands over the long term and index funds tend to perform better than actively managed funds over the long term. Better performance at […..]