Crypto operates on the greater fool theory. Because it has little real world use currently, investors are buying it on the premise that they will be able to find someone down the line willing to buy it off them – the greater fool, or some optimist who believes they have found their own golden ticket.
There’s an ironic certainty to the Cup, given the pony-picking premise. We know that it’ll happen every year on the first Tuesday of November (not even COVID could stop it, though it did keep the fans at home last year). Beyond that there are so many variables for the punters – weights, age, barrier draws, recent form, the race distance, the weather and the state of the track.
If you’re trying to pick stocks, the options are just as bewildering.
No matter the vehicle was chosen to navigate, once a company enters the public marketplace, it becomes subject to the same interactions between the supply and demand for securities that shape equity prices each day.
GameStop. Hedge Funds. Wall Street Bets. Robinhood. What was it all? In the last week of January, the price of the stock in GameStop (NYSE: GME) – an ailing brick-and-mortar video game retailer – very suddenly skyrocketed.
In mid-January 2020, China was announcing confirmed human to human contact of Covid-19, locking down Wuhan province and building temporary hospitals. While many investment managers carried out daily operations, some had their eye on China.
Dividend stocks are a staple of every income investor, and they can play an important role in any portfolio, regardless of age and financial circumstances. But it is very much possible that dividend investors can fall into the trap of hindsight bias if they are not careful and sufficiently diversified.
Do you find it confusing when a bleak economic report emerges from the press, only to be accompanied by a positive surge in the global share market? You're not alone. The last few months have produced many examples of a stark contrast between global market performance and economic indicators.
An important part of our role at Stewart Group is to give our clients the confidence that it is sensible and prudent to remain disciplined when stock markets are volatile. We think this video will hopefully add to that confidence.
Panic is in the air. For weeks there was calm, markets have been moving upwards without a hitch and shrugged the coronavirus off with breaking little sweat, but then there is this sudden panic now. The world is watching with concern, and it is unsettling on a human level as well as from the perspective of how markets respond.
Memories of SARS (Severe Acute Respiratory Syndrome), Avian Flu and the Ebola outbreaks are being rekindled with the spread of coronavirus and global stock markets are reacting. Let us see how two global equity markets; the S&P 500 and the UK equity market performed around these three significant outbreaks.
It's been quite a time for the markets this August. First the Reserve Bank cut the Official Cash Rate to a new record low of 1 per cent and last week we observed the first inversion of the US yield curve between two-year bonds and 10-year bonds since 2007.
We'd all love for the market to go on a tear forever, reaching record highs and blowing minds; but the truth is, downturns are a reality, particularly if you are a long-term investor.
Timing the market is tough, as is basing an investment strategy on economic or market forecasts. But we can do ourselves a favour, both materially and emotionally, by accepting that volatility is a normal part of investing and by sticking to a well-thought-out investment plan agreed upon in less stressful times.
We are sometimes asked about dollar cost averaging when investing client funds and whether this is a good idea. It is certainly something which should be considered, particularly for first time investors, and those whom are introducing a substantial lump sum deposit into their investment portfolio.
Renewed volatility in markets has awoken the investors from summertime slumber.
News directors drag out dated file footage of frantic traders and summon talking-head experts to explain what it all means. Well, what does it mean? More importantly, does it matter?
The financial media is drawn to catchphrases, acronyms, and buzzwords that can be sold as the new thing. FAANG (Facebook, Apple, Amazon, Netflix, and Google) is the latest of these. But does this constitute an investment strategy?
Investors at year-end are inclined to reflect on the 12 months gone and muse on what the coming year might bring.Aware of this appetite for speculation, the media tends to feed it with forecasts. These articles can be fun to read but are even more so a year later.
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