Archives for Markets - Page 9

The Psychology and Mathematics of Losing Trades

I am sure we are all familiar with the losing trade that becomes a long term investment. In fact, I have one in my portfolio right now: just to remind me of the terrible cost of not cutting losses. The Psychology of Losing Research by Tversky and Kahneman (Judgement under…

Sell The Banks?

This post is from the Voice of Reason: Gordon Barratt. For those that avidly read the business pages, you will have noticed a building theme of late: beating up Australian banks. Every second article seems to be heralding  that the halcyon days of the banking sector are in the past, for this…

Hawks, Doves and Investment Decision Making

Humans, perhaps by design, are always too optimistic. For example,  everyone considers their driving to be excellent, notwithstanding massive evidence to the contrary. People think they are smarter, more talented and better looking than they actually are. In 2007, psychologists Daniel Kahneman (a Nobel laureate) and Jonathon Renshon published a…

An Excellent Chart on US Corporate Debt

As a follow up to my article “So who’s buying the S&P500”, the chart below should give cause for considerable concern. It shows the huge spike in maturing debt that will need to be refinanced over the next few years. Total corporate debt is around USD4 trillion and most of…

The Voice of Reason: Gordon Barrett, 24 July 2014

Gordon is a stockbroker and  principal with Morgans’ Caloundra office. Morgans are sponsors of marketcap.com.au. Contact Gordon here. Equity Investment vs Commodity Investment Gordon often gets asked by clients whether it is better to invest in a commodity rather than a company that produces that commodity. “I get these queries…

So who’s buying the S&P500

Well, the Buy The F**king Dip (“BTFD”) crowd is still active and have recently been  joined by the Buy The F**king  All Time High crew (“BTFATH”).  Now we all know that the Zero Interest Rate Policy and Quantitative Easing  have left yield seekers few alternatives and so stocks grind higher.…

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