As a topic of conversation, investment is like sports. Everyone has an opinion. And the strongest opinions often come from those who spend more time in front of the TV than out on the field. Practitioners, meanwhile, are wary of anything labelled a sure thing.
Investment fads are nothing new. When selecting strategies for their portfolios, investors are often tempted to seek out the latest and greatest investment opportunities.
A key to a successful investment experience is understanding how markets behave and developing the discipline to avoid rash decisions based on short time periods.
Making sensible investment decisions is difficult. We are subject to a range of behavioural biases. We have to cope with incessant noise around financial markets. We behave in ways that are inconsistent with our long-term investment objectives. So, what can we do about it?
Although financial markets are awash with randomness and uncertainty, there are obvious, vital and, often simple, cues that as investors we seemingly choose to ignore or disregard. This results in poor choices and often disappointing outcomes.
One old adage about investment is that you buy a bunch of reliable stocks, stick them in your bottom drawer and forget about them. That ignores one pesky fact: nothing stays the same.
Depending on luck is simply not a sustainable investment strategy. Evidence-based, goal-based investment may not sound as exciting but is also a lot less work.
New Zealand's house prices have been ranked the most overvalued in the developed world behind only Hong Kong. The Kiwi housing market was also deemed to be the fifth most at-risk among OECD nations, according to an Oxford Economics report.
World economic data remained encouraging throughout Q3. Global equities, particularly developed markets performed strongly. Emerging markets were punished, while Australia made small gains. And another reason to be wary of what you share online.
Most KiwiSaver providers let their customers choose how their balance is invested, by choosing the fund type to invest their contributions and employer contributions in. The KiwiSaver fund types have different ways of investing money, for example different combinations of cash allocations or shares.
The Tarzino Trophy Daffodil Raceday on September 1 launches Group 1 racing for the season, bringing the big guns of New Zealand racing to Hastings, to battle at one of the country's stellar racing events.
Human beings have an astounding facility for self-deception when it comes to their own money. People who make bad money decisions can often rationalise them. Here are 10 common excuses.
Two colleagues went on holiday separately. One had a great time. The other had a miserable experience. Their respective stories provide valuable lessons, not just about taking a vacation, but about investment.
Thousands of bank accounts are frozen. It is now a legal requirement for banks, some investment managers, managed trusts and certain brokers to identify their customers who are foreign tax residents and send their financial information to Inland Revenue.
As part of our financial planning process, when clients have to make important decisions, we like to “stress test” their plan. One of the tools that we may use is a Monte Carlo simulation.
Belgium, France, England, or Croatia? Which football team are you betting on this World Cup? If you are a stock investor and an avid football fan, the soccer field can be a good place for a few investment lessons.
When you haven't got much capital of your own, the road to financial security can seem long, hard and complex. But the truth is that wealth building is relatively simple. All it takes is time and the price of a cup of coffee.
Most of us have multiple roles — as business owners, professionals, workers, consumers, citizens, students, parents, and investors. So, our views of the world can differ according to whatever hat we're wearing at any one time.
Like farmers planning a harvest, investors pinning their expectations on statements about arithmetical "average" investment returns can be disappointed. As with rainfall, market returns are rarely evenly distributed either across time or place.