Category Archives: Investing

Things investors should hate 1/5: Models

I don’t hate all models. I’m quite keen on the tall, leggy ones.  It’s the mathematical ones that come trailing clouds of false precision that are the subject of my ire.  Yet the world is a complicated place, too complex … Read More

Posted in Behavioural finance, Investing, Psychology | Leave a comment

Investing in Europe

Andy Parsons highlights the potential benefit of investing in Europe. Investing in funds that are exposed to countries that form part of the European Union psychologically provides UK investors with a natural progression into overseas markets. This is partly due … Read More

Posted in Eurozone, Investing | 1 Comment

Mindless Money 5/5: Avoid Overspecification

The paradox of investing is that the best investors have a system, but that this system, mindlessly applied, exposes them to the very risks that they’re trying to avoid.  Markets go through phases, and systems and concepts developed during one … Read More

Posted in Behavioural finance, Investing, Psychology | Leave a comment

Mindless Money 4/5: Stay Resilient, Be Prepared

Every so often in an investor’s lifetime the markets will throw us a completely unexpected curve ball.  Markets will fall off a cliff or soar off into the stratosphere. Whether we like it or not, if we invest in the … Read More

Posted in Behavioural finance, Investing, Psychology | Leave a comment

Mindless Money 3/5: Hold the Big Picture

The key phrase here is situational awareness.  It’s about having the big picture as well as the focused analysis.  The world, even that part of it tracked by stockmarkets, is a complex adaptive system made up of many working parts.  … Read More

Posted in Behavioural finance, Investing, Psychology | Leave a comment

Mindless Money 2/5: Don’t Oversimplify

Simplifying things is what we do, habitually.  The world is too complex, too multi-faceted for us to do anything else.  We develop a specific, individual mindset which we use to frame the world we operate in.  Sometimes this is a … Read More

Posted in Behavioural finance, Investing, Psychology | Leave a comment

Mindless Money 1/5: Focus on Failure

Tim Richards is away, analysing the Eurozone crisis from the lofty vantage point of a Alpine bar. In the meantime this is a series of mini-posts on how to avoid the worst faults of the behaviorally compromised investor based around the … Read More

Posted in Behavioural finance, Investing, Psychology | Leave a comment

A Tall Tale of Risk Aversion

Dead or Alive, It’s all the Same Amos Tversky’s and Daniel Kahneman’s 1981 paper on The Framing of Decisions and the Psychology of Choice demonstrated that people are risk averse in situations involving potential gains and risk takers in situations involving … Read More

Posted in Behavioural finance, Investing, Psychology, Risk | Leave a comment

High yield debt defaults rise but performance stays strong

Posted on by QFINANCE

In its latest reports on US and European high yield corporate debt, the ratings agency Fitch flagged up the fact that the trailing 12-month default rate on this asset class rose above 2% for the first time since October 2010, … Read More

Posted in Default, Investing, Yield | Leave a comment

Three ways to profit from bear markets

Most value investors already know why bear markets are an investor’s best friend.  Bear markets may be scary, but they’re the best time to pick up wonderful businesses at attractive prices. Why the best time?  Because in a bull market … Read More

Posted in Bear Market, Bear Markets, Investing | Leave a comment
Page 7 of 24« First...3456789101112...20...Last »