What are the main challenges to achieving good long term returns? Investors focus mainly on what the stockmarket might do; less so on their own behaviour. Some of the human behaviour that confers advantage in everyday life can drive poor investment decisions. The big challenges include; how we search for patterns and trends, the desire […]
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Tag Archives: investing
Why was Volkswagen in ESG and Sustainable Investing Funds?
October 6, 2015 
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Responsible investing must come clean about Volkswagen. Too many funds rated it highly on Environmental, Social and Governance (ESG). Collateral damage will run well beyond the car sector. Already, the scandal has tarnished the brands of Volkswagen and Germany, with their reputations for trust and engineering excellence. But it is not just about mis-selling cars. […]
Continue reading Investors love stories, but no happy ending for Emerging Markets
September 29, 2015 0 Comments
Investors love a good story, but the latest chapter of the emerging markets growth story has come as a nasty surprise to many. There may be much worse to come. Narratives can help to make sense of facts and figures. Stories can convey meaning, by joining up often unrelated information, and they offer hope. But […]
Continue reading Tougher regulation needed for UK listed company directors
September 7, 2015 0 Comments
A gap has opened up in UK regulation, leaving investors exposed to Companies Act and accounting issues without a clear remedy. Despite all the focus on governance and stewardship, investors are still getting nasty surprises. Tesco and Quindell are perhaps just the highest profile of those involved in further investigations. Making the stockmarket safer should […]
Continue reading Not what was forecast: UK index funds lagging active managers
July 31, 2015 0 Comments
Many UK active funds are now outperforming passive funds. But prejudices rarely disappear when hit with the facts. It is human nature to disregard data that contradicts our misplaced beliefs. This may be why little attention has been paid to the remarkable results of many active UK fund managers – in the face of much […]
Continue reading Risks are growing in big equity and bond funds
April 16, 2015 0 Comments
Money printing and the current stockmarket boom are increasing systemic risk, pushing problems into new areas. Now the questions is; are some asset managers too big to fail? The financial crisis highlighted risks in banks and insurance, but other areas have been overlooked. Finally, regulators are beginning to recognise risks in the investment sector, and […]
Continue reading Will China be sucked into the currency wars?
April 9, 2015 0 Comments
Currencies are fast becoming 2015’s big investment risk. A factor once largely ignored can now make or break performance. Already, sharp moves this year in the Swiss Franc and Euro have hit some funds hard. But, do investors get enough information from managers about the risks being run? Although many funds do not hedge, monthly […]
Continue reading Who wins from ‘adjusting’ earnings per share? Time for some rules.
March 3, 2015 0 Comments
Most companies in this results season are delivering reassuring updates, but can investors trust the numbers? Tesco’s issues have not only rattled its own shareholders; across the market, analysts wonder how widespread accounting concerns might be. Growth is scarce, and CEOs are under pressure to deliver. This has put more emphasis on presentation; but recent […]
Continue reading QE’s unintended consequences: Pension deficits to hit balance sheets
February 5, 2015 0 Comments
QE is having some serious unintended consequences, increasing pension scheme deficits and hitting company finances. Driven by liquidity and deflation fears, UK government stock, gilts, beat shares and most other asset classes in 2014. Long dated gilts gained over 20%. The trend has even accelerated already this year. Yet many UK pension funds, endowments and […]
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Behavioural Edge 
Why are commodities over-represented in indices?
Do investors have an outdate view of commodities? Far from helping to diversify portfolios, or representing a tangible way to benefit from economic growth, commodities have become volatile financial plays. A misguided view of the nature of these assets has resulted in them being over-represented in indices. Indeed, many passive investors may be surprised to […]
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