Night and day – UK banks are wholly different to the businesses they were before the credit crisis

By Kevin Murphy In Article of faith, we noted how banks are, to our minds, decent businesses even if – with the sector by some distance the cheapest in the UK market – this is not an opinion shared by … Read More

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Stress test – The experiment that suggests stress can cause short-term changes to risk tolerance

By Jamie Lowry How much or how little risk someone is prepared to tolerate as they seek to grow their wealth is seen as one of the more fundamental considerations in investment. Implicit within this belief is the assumption that, … Read More

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Article of faith – What you pay, not the growth you receive, is the biggest driver of future returns

By Kevin Murphy Given markets are at near-record highs – not to mention the concerns about broad equity valuations we have expressed on The Value Perspective of late – one question clients are increasingly asking us boils down to how … Read More

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Measuring up – Are you sure your benchmark index is doing the job you think it is?

By Kevin Murphy Professional and private investors alike will often and without a second thought compare trading strategies or portfolio performance against a benchmark stockmarket index but are they right to do so? To examine that question further, let’s consider … Read More

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Storm warning – Investors must not believe the current benign times will persist indefinitely

By Ian Kelly As investors, we are in many respects living through some pretty gentle times – and those who would counter that view by pointing to the bleak news emanating from areas such as Gaza and Ukraine must at … Read More

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Price war déjà vu? – look beyond market panic to see a little bit of history repeating

By Kevin Murphy Consider the following excerpts taken from the national broadsheets: “The discounters are moving in at one end of the market … and some blue-chip suppliers are discounting their premium brands. The supermarkets’ middle-ranking, own-label products are looking … Read More

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In the frame – With any search for answers, it helps if people can first agree on the question

By Kevin Murphy “An imbalance between rich and poor is the oldest and most fatal ailment of all republics.” Plutarch (45-120AD) As the above quote shows, income inequality is by no means a new concern but it is one that … Read More

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Strangers on a train – Why the concept of ‘pluralistic ignorance’ really is not bliss

By Ian Kelly In their recent paper Mistakenly seeking solitude, Nicholas Epley and Juliana Schroeder of the University of Chicago describe an experiment in which, one morning, they recruited 118 commuters at a suburban railway station and randomly divided them into … Read More

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A reach for Sky – The valuations are stacked against BSkyB’s push into the rest of Europe

By Andrew Lyddon It is a fact of corporate life that company management will occasionally decide to significantly change the strategic direction of the business they run and, whenever this happens, it is a fact of investment life that sometimes … Read More

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Open, not shut, case – Extra information can be a bad thing if you do not keep an open mind

By Ian Kelly Dan Kahan last appeared on The Value Perspective in Tale of woe, when we discussed his work on the way people’s numerical skills can be affected when they are asked questions that conflict with firmly held beliefs. … Read More

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