Tag Archive: Investments

  1. The Markets

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    “Gonna take a sentimental journey…Gonna set my heart at ease…Gonna make a sentimental journey…To renew old memories.” If you’re a fan of Ella Fitzgerald or Frank Sinatra, then you probably recognise these lyrics. Although we rarely think of them as such, the ups and downs of stock and bond markets are sentimental journeys. They reflect the thoughts and attitudes of investors toward particular companies, investments, and markets. Investopedia explains it like this: (more…)

  2. If You Can Keep Your Head When All Around You Are Losing Theirs….

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    It has been quite a year for stock markets. In the past 12 months shares have soared to record highs; higher than the tech boom in 2001 and higher than the credit bubble of 2008.

    But let’s not get carried away. Being disciplined with an investment strategy is as important when times are good as when times are bad, but in some ways the excitement of a rising market makes it harder. Here are three things that investors should remember while they are enjoying a rising market – and what we do about each one.

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  3. It has been said stock market returns revert to the mean

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    What does that mean? Reversion to the mean is a statistical phenomenon. It’s the idea the further something is from the mean – or average – the more likely it is the next thing that comes along will be closer to the mean. For example, if a golfer normally plays to par but plays three over par, it’s likely that player will finish better in the next game (unless, the player’s in a slump, but that is a different topic). 

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