Archives for Markets - Page 3

Three Great Charts on S&P 500 Performance Over Time

The following three charts show the return on the S & P 500 on a daily, monthly and annual basis. They are reproduced from an article by Cullen Roche of Pragmatic Capitalism. Read the article here. The average daily and monthly returns are random and negligible. This supports the common…

The Australian Real Estate Correction has Begun

Since the commodity boom, the only game in town has been residential house and apartment construction. Virtually all of this construction has been financed by offshore lenders, through local banks. This made eminent sense when Australia’s cash rate was much higher than the rest of the developed world. However, this…

Investors’ Behavioral Biases: Part V – Herding

Humans are hard-wired to belong to a group, typically one with shared cultural and/or socioeconomic attributes. Most people are social and have a natural desire to be accepted by the group, and therefore adopt the group’s customs and behaviors. An individual may behave quite differently when away from the group.…

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