ROGER MONTGOMERY

Two cognitive biases investors must avoid

Daniel Wu

September 27, 2016
Recently, members of the global team have been reading Philip Tetlock’s book Superforecasting: The Art & Science of Prediction, which follows a group of “superforecasters” during a five-year forecasting tournament hosted by the U.S. intelligence community. This article summarises two cognitive biases that investors need to be aware of if they wish to become better forecasters. Continue…

by Daniel Wu Posted in Investing Education.

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Spiralling debt is pouring fuel on investor anxieties

David Buckland

September 26, 2016
These days, it’s not easy for investors to feel relaxed and comfortable. Pouring more fuel on investor anxieties is a report by the Bank of International Settlement that shows global debt spiralling out of control. Continue…

by David Buckland Posted in Global markets.

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POSTED IN Global markets.
Sizing Your Positions (Part 2)

Christopher Demasi

September 26, 2016
In the first part of this series we explored the concept of a valuation range as the first critical input into determining an appropriate position size for a stock. As promised in the previous instalment, today’s blog will address how this input interacts with a second critical variable to form a “roadmap” that guides us to more optimal position sizing decisions. Continue…

by Christopher Demasi Posted in Investing Education.

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Healthscope: On Time, On Budget, Encore!

Ben MacNevin

September 23, 2016
Healthscope is investing heavily in its hospitals to accommodate Australia’s growing demand for health care. Its 2016 full year result indicates they’re well on track to deliver margin expansion and strong earnings growth over the coming years. Continue…

by Ben MacNevin Posted in Companies.

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Why we take the outside view

George Hadjia

September 23, 2016
When it comes to making investment decisions, many people will fall into the trap of focusing on their own circumstances, and search for evidence from their own experiences. This is called taking the inside view. But, as highlighted by notable writers such as Daniel Kahneman and Philip Tetlock, a better approach is to take the outside view. Continue…

by George Hadjia Posted in Market commentary.

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WHITE PAPER

THE LOST DECADE AND THE SEARCH FOR MORE INCOME

It might surprise you to know that there has been no capital gain from the ASX200 for a decade. So investing must be all about the dividends? In our second whitepaper for the year we demonstrate a different approach to shares and income generation to meet income needs versus buying shares with attractive dividend yields.
download the whitepaper
When low fees mean low returns

Andrew Macken

September 22, 2016
For years now, there has been an almost-structural increase in the amount of capital allocated to passive equity index funds; and a corresponding decrease in the amount allocated to active equity funds. The rationale has been simple: passive funds are typically much lower cost and their returns have outperformed most active funds over recent years. What’s not to like? Continue…

by Andrew Macken Posted in Global markets.

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Will a ‘robo adviser’ be your next financial adviser?

Scott Phillips

September 22, 2016
Artificial intelligence is disrupting industries as diverse as manufacturing, healthcare and journalism. So it is not surprising that financial advice which was typically delivered through a financial adviser is being disrupted. Continue…

by Scott Phillips Posted in Market commentary.

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Reasons to invest in a market neutral fund

Roger Montgomery

September 21, 2016
Buy low. Sell high. That’s all there is to it, right? Well, not quite. You see there are alternative strategies that not enough investors are taking advantage of. You could sell first and buy later at a lower price. As long as the selling is at a higher price than the buying, it doesn’t matter which comes first, you’ll still make a profit. Continue…

by Roger Montgomery Posted in Market commentary.

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Falling loan book growth is a warning signal for bank investors

Stuart Jackson

September 21, 2016
Our big banks are a core holding in most Australian portfolios. But with long-term loan book growth likely to be materially lower in coming years, bank profits – and share prices – could be adversely impacted. Continue…

by Stuart Jackson Posted in Financial Services.

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Can Trump really win the US election?

Andrew Macken

September 20, 2016
Why have global financial markets not reacted to the potential instability that would follow a Trump victory?

by Andrew Macken Posted in Video Insights.

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POSTED IN Video Insights.