Would you like some free money?
WE THINK of government spending in the same way as our own spending. If you take a loan today to buy a car, you are 'pulling forward' earnings from the future into the present, thus reducing your future spending power as you repay the loan with interest over time.
Things may appear changed forever but the old ways usually return quickly
THE much feared second wave of Covid-19 infections has arrived. Many have been worrying about such an event which may follow the 1918 Spanish Flu, causing a higher death toll, further economic lockdowns, and more bankruptcies in the corporate sector.
The disconnect between stock prices and the economy
A DEAFENING chorus has emerged since the stock market bottomed in late March and then staged a fast rebound that caught everyone by surprise, even as the pandemic numbers continued to grow:
Superforecasters: Wisdom of crowds versus trading on emotions
BUYERS of equity-linked notes and other similar investments are fond of saying: "I'm a buyer if this stock falls 30 per cent". What they really mean is that they would be a buyer if the stock dropped and if fundamentals stay the same as today. You can be sure that any time a stock falls by 30...
How to keep your head when other investors are losing theirs
LAST month's column discussed investing during global health emergencies. Since then the situation, which originally looked to be confined primarily in China, has become global.
Investing during virus outbreaks
WE HAVE become used to expecting an equity bear market every decade or so.
Investment advice I wish I knew when I was 25 years old
TIME is an investor's best friend. The variable that has the biggest impact on an investor's long-term return is the time invested. The longer the time, the more compounding of returns.
End of the decade: Time to gauge investment trends
A DECADE ago, the prevailing investment view was that the world had reached Peak Oil, and oil companies were widely recommended as a core long-term allocation.
Throwing money out of helicopters
BEN Bernanke, former chairman of the Federal Reserve, earned the nickname "Helicopter Ben" when he suggested in 2002 that helicopter money could always be used to stave off deflation.
Manufacturing slowdown vs recession
ON Oct 1, the US Institute of Supply Management Manufacturing data came out much worse than expected, causing a 2-day drop of 2.9 per cent. The figure grabbed financial news headlines, as the release of 47.8 was much worse than the 50.0 expected. Any number below 50 signals contraction in...
Bonds that eat your money
THE phrase 'This Time it's Different' is described as the four most dangerous words in investing. They are usually uttered at bubble peaks to explain a new paradigm in investing, cementing a trend that has been in place for years and is expected to keep up its run in the future.
When the pursuit of wealth does not bring happiness
IN almost three decades of managing money, all our clients had targets to grow their wealth by multiples. Clients with $2 million targeted about hitting $10 million and retiring. The ones with $10 million had ambitions of retiring with $200 million. The ones with $200 million wanted to become...