Investors attempt in the medium/ long term to take advantage of the extra returns generated by participating as shareholders in the selected companies of their portfolios.…
Financial assets have some great advantages like the ability to diversify and the possibility to engage in partial sales to finance desired expenses. No doubt, Liquidity…
The first quarter of 2022 reinforced the view that a diversified portfolio should strategically include most asset classes and can prove beneficial during hard times.…
A critical evaluation of the consensus views.
The first quarter of 2022 reinforced the view that a diversified portfolio should strategically include most asset classes…
Year 2021 has been very kind to the believers in the equity culture who had the courage to stay invested during the impressive multi year…
Very often we hear and read comments on the necessity to engage in excessive or radical market timing.
Some old truths :
A)…
The issues of rationality and the attainment of equilibrium (as well as its stability and uniqueness ) in the macro economy and in capital markets…
The recent great crisis reminded us of certain truths and lessons.
A) Do not bet against the human race.
Progress of humans in science has…
Historically, over the very long term, investing in value stocks has delivered better returns than investing in growth stocks (MSCI defines value as stocks which…
While traditional finance assumes that investors will rationally calculate probabilities of outcomes to maximize utility, behavioral finance suggests that we make decisions based on bounded…
“In the short run, the market is a voting machine, but in the long run it is a weighing machine.” – Benjamin Graham
Pay dividends: To cause or produce good results in the future due to an investment of time, money, or other resources.
Equity investors have been rewarded
Analysing long term returns of different financial assets it becomes clear that stocks have outperformed bonds and cash. Furthermore, the…
While data and financial theory support equities as a superior long term investment to cash and bonds, this can be difficult to remember during large…
Very often ‘This time it is different’ is true !
The causes, the length and the severity of recessions and Bear markets are not the…
We would like to repeat our longer term view: Valuations relative to bonds and cash are compelling. Following the worst decade since the 1920’s (all…
A) A stock market P/E of 19 to 20 means a 10 to 15pct appreciation from current levels. We would welcome it before “a nasty…