Investing in the stock market is as much a test of emotional resilience as it is of financial acumen. Understanding the psychological whirlwind investors face during market downturns is key to navigating these turbulent periods with your wealth—and sanity—intact. Here’s what I’ve learnt over my career about human behaviour when markets are volatile and/or take […]
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During the 2023 holiday season, I had a lightbulb moment while playing board games with my family. For the first time in a long while, I felt truly happy, not worrying about the past or the future, just enjoying the now. This was a big deal for me, someone who’s usually wrapped up in anxiety
One of my favourite Benjamin Graham investment quotes is, “The purpose of the margin of safety is to render the forecast unnecessary.” There so much insight and wisdom distilled into that eloquent line. The major point about the margin of safety is that it removes the speculator’s need to predict the future, thus turning that speculator
In the realm of investment management, one of the most challenging tasks is convincing clients that jumping onto the bandwagon of the latest, most sophisticated thematic funds might not be the silver bullet they’re seeking for their portfolio. It’s a tricky situation when a portfolio is underperforming. Most times, doing nothing is probably the best
Navigating the world of investing? It’s not just about picking stocks and watching them grow – it’s also about knowing how much risk you’re comfortable with. This is what we call risk tolerance. It’s a fancy term, but it’s really just about how you feel when the value of your investments goes up and down.
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Venturing into the world of stock investments can be both exciting and daunting. Here’s a practical guide to help you understand the essentials of stock investing. 1. What Stocks Really Mean: Think of stocks as your small slice of a company. When you buy a stock, you’re essentially buying a piece of that company’s future
The ever-changing landscape of financial markets often compels us to fixate on the immediate: Why did the market dip by 2% today? What moves will the Fed make next? What are the key themes shaping the markets for the coming years? Such questions form the heartbeat of the investment sector. They fuel narratives, drive sales,
Market downturns, like the one caused by the Covid-19 pandemic, often result from a mix of factors including economic bubbles, panic selling, high interest rates, geopolitical issues, or unpredictable events. These declines can be exacerbated by aggressive traders who, facing margin calls, liquidate their holdings, further driving down the market. However, such downturns can also
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Investing isn’t just a quest for wealth; it’s an exhilarating journey of self-discovery and awareness. This holistic approach differs starkly from the narrow focus solely on financial gains, often ignoring the deeper emotional and intellectual gratification that investment can bring. A standout example of this enriched experience is the art of diversifying your investment portfolio.
Forecasting the future performance of stock markets is a ritual among financial experts, but often it leads to a realization of the futility of such predictions. While it appears harmless, it can encourage negative investment habits. To realistically anticipate stock market performance, understanding its three primary drivers is essential: valuation shifts, dividends, and earnings growth.
I’ve Fixed My Cystal Ball! These Stocks Will Make you Rich in 2024. Read More »
