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.
If you weren’t already weary of living through historic events in recent years, here’s another driver for rapid change: inflation is on the rise, and quickly. In New Zealand the annual inflation has jumped to 4.9% in the September quarter compared to the June 2021 quarter which was reported to be 3.3%.
Buying a house these days is turning into quite the luxury. If we dig deeper just into the statistics of Hawke’s Bay, we can see the prices of our properties have skyrocketed. Adding to matters, the Reserve Bank’s just announced the first cash rate rise in 7 years – some retail banks immediately passed this increase on to borrowers, while others are phasing them in slowly.
To my surprise, we’ve chalked up five years of writing our ‘Canny View’ column. It truly is a milestone to have five years’ worth of weekly columns under our belt – and to have our community continuing to engage with them. To celebrate Canny View’s 5th anniversary, we’ve compiled five of our top articles:
The social media is blowing up with ongoing talks about a hamster. A hamster? It may come as a surprise, but a hamster in Germany is proving "A Random Walk Down Wall Street" author Burton Malkiel's hypothesis that a blindfolded monkey throwing darts at a stock ticker list in the newspaper could do just as well as a human investment professional.
It is perhaps no surprise that financial stress can impact your mental health. This stress can also impact your relationships, particularly with your significant other. As a whole, we have a tendency to brush the issue of financial stress off as part of life - however, it can cause a tremendous amount of emotional strain, both personally and in your relationship.
When it comes to investing, we need to distinguish between two very different types of risk: good risk and bad risk. Good risk is the type you are compensated for, in the form of greater expected returns. For example, shares are riskier than bonds, therefore over time, shares must compensate investors by providing greater expected returns.
With good planning, some retirees may already be handling their new circumstances in a good way. Staying home may have resulted in spending less, especially if they’re travellers or have active social lives. Market falls aren’t welcome, but with an understanding, they happen, along with a portfolio built to withstand them, there can be good results.
While we understand the impact of COVID-19, the biggest global health crisis in 4 generations, Alzheimer’s disease demands more attention. But why? Every 3 seconds, someone in the world develops dementia and with the current number of dementia being 50 million people this number is only set to double over the next 20 years reaching 82 million in 2030.
The outbreak of COVID-19 has ushered in a new situation. Risk sits at the forefront of every investor's thinking right now. For retirement savers, it is uncomforting to see the value of their portfolios shrink substantially within such a short period.
The outbreak of COVID-19 has provided numerous examples of decisions that are seemingly fuelled by stress and uncertainty; from the bizarre stockpiling of toilet paper to investors moving between funds and cashing out.
Okay, so many of us may have heard our peers and family members say that we should cancel 2020 and start afresh with 2021! We can all agree that it has been a tough battle with many unexpected changes along the way. It’s remarkable how well the nation has adapted to these dramatic changes to our everyday lives.
A topic we can all understand is coffee, wouldn’t it be great if making financial decisions were as simple as buying a cup of coffee? This is where financial advisors come to play and become the answer booklets to these questions. Their primary goal is to help clients determine whether they are on the right track to meet their goals and outline their path to overall financial success.
We’d all love for the market to go on a winning streak forever. Reaching record highs and blowing minds; but the truth is, downturns are a reality, particularly if you are a long-term investor.
Reusable bags, paper straws and recycling are great initiatives, but many have elevated their thinking to sustainable investing. Kiwis are increasingly interested in how they can make their investment decisions in accord with their views about human rights, climate change and environmental sustainability. But where does one start?
Okay, the annual inflation is now running at 3.3%. In the June 2021 quarter compared with the March 2021 quarter, the New Zealand Consumer Price Index (CPI) rose 1.3%. A much stronger lift than the market expectations. So what does it mean to us?
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.
Over the course of our lives, there are many uncomfortable questions and conversations to be had. But it is safe to say, those dealing with financial well-being are perhaps the most persistent and difficult.
Rob Everett, CEO of Financial Markets Authority (FMA), says: In New Zealand, many people now offer their thoughts and perspectives on financial matters, and some have built strong followings on social media. But sometimes talking about money or investing can cross over into providing financial advice.
Why would the couple in their 50’s have such a different outlook to the man in his 30’s? It’s hard to be a successful investor unless you’re an optimist. Firstly, if everyone does well, you’re likely to do better as an investor.
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