The Sky Is Falling
Or so said Henny Penny in the well known story and this seems to be the reaction of everyone on my LinkedIn feed at present. So a little bit of context is needed and as usual this context is provided by looking at data – a surprisingly rare occurrence in the world of finance. If…
Well That Also Sucks
I have just snipped the image below as the market in the US closes. The US market is apparently being rattled by the potential for ripple effects from Evergrande the Chinese real estate group which as can be seen below does look distinctly wobbly. However, markets go up and markets go down. I understand that…
Emotional Investment
One of the most difficult issues for traders to overcome is their emotional investment in the outcome of any trade they take. Every time you take a trade long or short there is some degree of emotional investment even in the most experienced trader. There is no nexus between being right and being profitable but…
Opportunities 3
I was playing with the top 500 local stocks by capitalisation and decided to generate the table below which looks at the year to year performance of the top 10% which I arranged into very loose bins below. As you would expect there are a small number of outliers and a cluster around the bottom…
All Ords TR vs ASX/S&P200 TR
With nothing else to do during lockdown, I thought I would have a little fun with excel and look at two closely related indices and see if analysing their returns told me any substantive. Spoiler alert it didn’t other than there were times when the All Ords TR did better and times when the ASX/S&P/200…
How Much Is Your Super Fund Costing You
In this post, I had a bit of a dig at the self-congratulatory nature of super funds and their lack of performance. In my piece, I mentioned that the long term rate for super funds was quoted at being around 7% for the past 30 years. So I decided to see what the differential between…
The Five Universal Laws of Human Stupidity
It’s been one of those days, maybe I am underselling this, let’s call it one of those years…. In 1976, a professor of economic history at the University of California, Berkeley published an essay outlining the fundamental laws of a force he perceived as humanity’s greatest existential threat: Stupidity. Stupid people, Carlo M. Cipolla explained, share…
The Secret of Synchronization
Ever wondered why markets work the way they do? This might help.
What Happens to Your Body on No Sleep
Sleep has long been the secret weapon of athletes just as it should be for traders. Scientists have a firm grasp on the purpose of certain automatic physical functions, like blinking, breathing, or digestion. When it comes to sleep, however, researchers still aren’t clear on why exactly your body needs to shut off every night.…
Money For Nothing
It has been a while since I updated my superannuation fees chart but was prompted yesterday by the following graphic that hit my LinkedIn feed. This was followed by the usual round of self-congratulations and back slapping as to how amazing the superannuation industry was. However, the table is lacking context in that it does…
What Are You Being Told?
This could easily fall under the heading of opportunities but it deserves a stand alone topic. When running my scans over the past months I have noticed that there has been a degree of repetition in the sort of stocks that have been popping up. Whenever this occurs it means I am being told something…
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