In the middle of the biggest share market downturn in decades, investors were flocking to the tried, the true and the familiar. Small and risky was no longer beautiful. But 12 months is a long time in the financial markets. (more…)
At 6%, Australian house prices didn’t dip nearly as far as those in the USA and UK (32% and 19%, respectively) and already prices are rising again. So what happens now? And how does housing compare with other investments?
Despite fears of the big declines we’ve seen in the USA and UK, Australian house prices did not plunge dramatically - indeed the average drop remained well in single figures.
Yet, after “only” falling 6% from their early 2008 peak to the March quarter (a big enough drop for those trying to sell), house prices have begun to recovering, with Australian Bureau of Statistics’ data showing average gains of 4.2% in the June quarter, confirming rises already seen in private-sector surveys. (more…)
The failure of traditionally active investing approaches is gaining increasing attention in the mainstream media. This comprehensive feature from The Christchurch Press in New Zealand cites the success several local advisors have had by implementing the Fama/French research in their own businesses.
Click here for the full article.
The market downturn has again dispelled the myth that active managers outperform in bear markets, according to updated research by Standard & Poor’s. The S&P study found active funds trailed their benchmarks over the last five years across major equity and fixed interest asset classes.
Read the full article from The Sydney Morning Herald here.
History has shown that dollar-cost averaging as an investment strategy in shares - particularly during bear markets - results in portfolios that are worth more. How? Well, there are a couple of tips you need to follow. (more…)
Although it’s early days – and the financial crisis is certainly continuing – encouragingly, some key signposts to global economic-recovery are showing tentative signs of improvement. So with that in mind, is it too early to bargain hunt for investments? (more…)
Think you approach your investments logically? Research shows investors can sabotage their investment strategy based on several types of behaviour, including a ‘herd mentality’ and emotion. Knowing how and why you can sabotage your investment strategy gives you a stronger understanding of how to avoid it.
A long list of wealthy investors both in the US and abroad have been shocked to learn that Bernard L. Madoff, a prominent and well-respected broker and money manager, has been accused of orchestrating one of the most extensive investment frauds in US history. So what is a Ponzi Scheme and what happened? (more…)
Heightened market volatility has tested the discipline of investors. In this video, David Booth, the CEO and founder of Dimensional Fund Advisors explains why it makes sense to stay invested in equities.
The video can be accessed online at http://www.dfaau.com/library/videos/stick_around/
It can also be downloaded to your iPod or MP3 player by clicking on the link below:
Momentum is defined as the impetus to go forward, develop or get stronger. In investment terms, employing a momentum strategy is taking advantage of observable trending in share prices. Simply, a momentum strategy takes into account that stocks that have done well over the previous few months tend to continue to do well over the ensuing months. Likewise, stocks that have been tanking, tend to continue to head south. (more…)
