Tuesday, 10th December 2019
Why money managers don’t swim against the tide….
As a private investor with money to put into the market, there are basically two choices on how to proceed….
One, you can trust to your own powers of analysis, do your own due diligence, come to your own conclusions and allocate your own capital into the vehicles, instruments or stocks you determine to be appropriate for your needs….
Or two, you can trust to the ‘experts’ – professional brokers, analysts and money-managers who get paid to put your money to work for you….
There’s a whole multi-billion-pound international industry built on the idea – and constantly promoting the argument – that trusting to the ‘experts’ is the way to go….
After all, the ‘experts’ have the skills, the knowledge, the experience, the know-how, the savvy, the contacts, the inside-information, the data, the tools, the resources and the technical proficiency to get the job done more effectively – with measurably better outcomes – than poor old individuals like you and I could ever hope to achieve under our own steam….
At least that’s what ‘they’ say….
…. the self-same professional brokers, analysts and money-managers who rely on the commissions paid by private investors like you and I to put bread on the table and petrol in the Ferrari….… Click here to read more
Tuesday, 26th November 2019
Trust to girl power in 2020….
After the global financial crisis of 2008/09, Christine Lagarde, chief of the International Monetary Fund, made some comments that enjoyed wide circulation. She said this….
‘I do believe women have different ways of taking risks, of addressing issues…. of ruminating a bit more before they jump to conclusions. And I think that as a result, particularly on the trading floor, in the financial markets in general, the approach would be different….’
The comments did not represent an outright condemnation of the entire male species nor any individual member of it….
But the insinuation was clear: had more women been at work in senior positions on Wall Street and in other financial centers around the world, the crisis probably wouldn’t have happened….
Once the crisis had been digested, many top-level bankers attended the World economic Forum in Davos, Switzerland….
They had an interesting debate around a hypothetical question: had Lehman Brothers (one bank that crashed and burned during the crisis) been Lehman Sisters, would it still have failed as it did?
The consensus opinion among the bankers was that Lehman Sisters would not have made quite so much money as Lehman Brothers did during the boom times, but that Lehman Sisters would still be in business today….… Click here to read more
Tuesday, 29th October 2019
The laws of the universe remain in force….
Poor old Neil Woodford….
He flew so high. His star burned so bright. He was a master of the universe….
He had it all – in spades – and then some….
The big name, the sterling reputation, the rave reviews, the Midas touch….
The massive earnings, the splendid houses, the flashy motors, the horses and the stables….
But all that was back then – back in the days when Woodford was a wunderkind with his finger on the pulse of the markets….
…. Back in the days when Woodford could do no wrong – when Woodford’s stellar record as a stock-picking broker at Invesco was still up-front, in-your-face and fresh in the mind….
…. Back in the days when he was still building the legend that saw him turn every £10,000 invested in the fund which he managed into a princely £255,000 over two-and-a-half decades….
The shaven-headed operator – who preferred wearing jumpers and jeans to the usual city-boy attire (so cool!) – made ordinary investors rich. No other fund manager could live with him.
He was the financial world equivalent of a galactico.… Click here to read more