30 Aug 2016
The Wisdom of Great Investors: Part 3 of 6- Be patient
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Jesse Livermore (1877–1940) was a 20th century stock trader made famous for making, losing and then making several millions of dollars and for short selling during the stock market crashes in 1907 and 1929.
Jesse Livermore wrote ‘How to trade in stocks’ which was published in 1940.
One of Jesse Livermore’s great quotes is that…“The market does not beat them. They beat themselves, because though they have brains they cannot sit tight.”
26 Aug 2016
The Wisdom of Great Investors: Part 2 of 6- Don’t attempt to time the market
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Peter Lynch (born 1944) was hired by Fidelity as an Intern in 1966, partly because he had been caddying for Fidelity’s president at Brae Burn Country Club in Newton, Massachusetts USA.
In 1977 he became head of the Magellan Fund which had $18 million in assets and by the time of his retirement in 1990 the Magellan Fund had grown in excess of $14 billion in assets and averaged 29.2% per annum from 1977 until 1990.
Peter Lynch has co-written three books on investing, including ‘One Up on Wall Street’, ‘Beating the Street’ and ‘Learn to Earn’. His most famous investment principle is “Invest in what you know”.
One of Peter Lynch’s great quotes is that… “Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in the corrections themselves.”
24 Aug 2016
The Wisdom of Great Investors: Part 1 of 6 – Avoid self destructive behaviour
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Benjamin Graham (1894-1976) is considered to be the father of value investing and he and David Dodd published the Security Analysis in 1934.
Benjamin Graham was Warren Buffett’s teacher and to date, Security Analysis has been in continuous print for over 80 years with well over a million copies sold.
Security Analysis remains the investor’s bible and is heavy going which is why Benjamin Graham wrote The Intelligent Investor, original publication in 1949.
The Intelligent Investor is without doubt the definitive book on Value Investing and we strongly recommend you have read because for one thing, it explains why part time investors should never ever hold direct stocks.
One of Benjamin Graham’s great quotes is that… “Individuals who cannot master their emotions are ill-suited to profit from the investment process.”
16 Aug 2016
Negative Interest Rates: A Steven Bradbury Moment
- Posted by Dejan Pekic BCom DipFP CFP GAICD
While we are in the midst of the 2016 Olympic Games, this fact would be hilarious if it was not such a serious matter.
What do Steven Bradbury and US Treasury Bonds have in common? All of their competitors keep falling.
You will see from the attached table that Switzerland is running negative yields across all maturities right up to 30 years.
Crazy stuff.
Alternatively, the United States, the United Kingdom (and Australia which is not listed) are still posting positive interest rate yields on sovereign bonds for all maturities.
12 Aug 2016
Middle Class: Real Income Gains
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Who has gained from globalisation is a question that most of us have pondered.
It is a great question and the numbers show that the winners to date have been the Asian middle class and the global top 1%.
Click to watch the research video.
Click to read the paper Why the Global 1% and the Asian Middle Class Have Gained the Most from Globalisation.
8 Aug 2016
China: Five Trends
- Posted by Dejan Pekic BCom DipFP CFP GAICD
There is so much noise about China and whether the Chinese economy is faltering but the numbers just keep climbing.
The Boston Consulting Group published the following five trends in China that they expect will keep the consumer boom strong and growing for the next decade.
These five trends (assuming they hold) will give business the opportunity to sell more goods and services to wealthier and younger tech-savvy consumers across a large number of cities.
Such are the economic knock on benefits of having a domestic population base of over 1 billion consumers.
3 Aug 2016
Social Security: 1 January 2017
- Posted by Dejan Pekic BCom DipFP CFP GAICD
From 1 January 2017 the asset test free areas and the taper rate will increase.
Everyone on the Age Pension will be subject to a new taper rate of $3 for every $1,000 (currently the taper rate is $1.50 for every $1,000) above the new asset test free area which in some cases will rapidly reduce/disqualify them from Age Pension payments.
For example, click to view impact on Age Pension recipients who own their home.
The message from the Australian Federal Government is to start putting away and investing more of your own money for your retirement years.
