Income investing
Income investing continues to be an important factor to consider when building a portfolio.
teamwork makes the dreamwork
You have all heard it before, it's the classic hedge. It works because working alone or with a group has advantages and drawbacks and I always think the best answer is 'it depends on the circumstances'.
Who remembers 1986?
I particularly like this table below from Schroders showing the effect of missing out on the 'best days'.
£1,000 invested in 1986 in the FTSE 100 would have grown to £17,323 (total return). If you missed the best 30 days, that growth collapses to just £3,461 (which would be less given the trading costs of missing those days too!)
end of the tax year
Julius Caesar lived over two millennia ago, but still influences our everyday. No I am not talking about the overpriced (but delicious) salads 🥗 , I am talking about the calendar 📆.
🛑 No action is still an 'action'
When in uncertain times, human beings tend to feel like they need to make decisions to prove to themselves they are in control. In the same vein, a goalkeeper, when facing a penalty kick will often dive rather than staying in the middle of the goal.
2024 is an election year…
2024 is going to be a noisy year for investors but one line that will undoubtedly be thrown out will be the expected performance of the S&P in an election year.
"finished yet?"
What are the chances that the report is complete by Tuesday? According to social science, the chances are low, mainly as a result of planning fallacy.
Staying invested
Over the last 12 months we have been doing work and raising the awareness of investors staying invested through the cycle.
pizza night
I've recently been talking with colleagues about optimal team size and particularly in the area of investment decision making. How many people should you have on an effective investment committee? Jeff Bezos famously said “If you can’t feed a team with two large pizzas, it’s too large.”
Fresh Start Effect
Since it is the start of the year and many of you will be encountering the "Fresh Start Effect", it may be the case that you have decided to read more.
Asset class returns
As we approach year end it is important to reflect on what has worked vs what hasn't.
🏈 Superbowl week, which means:
But more importantly, it is about the football. I want to take you back to Superbowl 49 in Glendale, Arizona which featured two of the most respected coaches from the last 20 years, Bill Belichick (New England Patriots) and Pete Carroll (Seattle Seahawks).
'How Will Equity Markets Perform in 2024?'
Latest article from Joe Wiggins titled 'How Will Equity Markets Perform in 2024?' is a must read for any behavioural investor.
Tis the season
It's that time of year. Time for Home Alone. Time for Bailey's. Time for endless Slade. Time for the stock market to rally?
Ratio: US Small caps to us large caps
The magnitude of the underperformance in US small caps vs. large caps is stark. Now at their lowest point since Jan 2001. Is there a chance of reversion to the mean or is there something more structural going on?