Finance: Don't buy into the 13 trillion dollar lie

Finance: Don't buy into the 13 trillion dollar lie

PHUKET: Following on with lessons from Tony Robbin’s book 'Money: Master the Game' is a very important Wall Street myth that he busts. When you pay an active manager to buy and sell shares of stock on your behalf, you are doing so in hopes that he will ‘beat the market over time’. The truth is that over any extended period of time, 96 per cent of mutual fund managers fail to do so. You are paying to be worse off than passively investing in a low cost index fund. By ‘the market’, I mean an index or broad collection of shares that represents the market. The S&P 500 is the one most managers are measured against and d

Friday, April 7, 2017 | 10:15 AM

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Finance: What interest rate hikes mean for investors

Finance: What interest rate hikes mean for investors

PHUKET: Early last month, the US Federal Reserve raised interest rates, with the market largely ignoring the long-expected move. With at least a couple of more rate increases expected in the near future, I would still not expect the market to suddenly turn bearish. If the Fed thought the US economy was still too weak, they would not be raising interest rates. When we had the 2008-09 financial crisis, the market was like a patient who had just had an accident and ended up on the operating table with the underlying economy nearly dead. The market bottom was then followed by a small recovery rally, then pullback, and then a b

Sunday, April 9, 2017 | 02:00 PM

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Finance: Market pullback nothing to worry about

Finance: Market pullback nothing to worry about

PHUKET: As of late March, US stocks appear to be cooling after strong gains since the US elections. Over the next 1-3 months, I expect further market consolidation with a pullback by major market indices to the 50-day moving averages level being a real possibility. The Dow Jones could fall below 20,000, while for the S&P 500 index, a 3-5 per cent pullback to a support level at the 2,300 mark would still indicate a healthy market. What I don’t want to see is the S&P falling further than that, as then we may start to see other (more bearish) technical formations start to form on the technical charts. Over on the NA

Monday, April 17, 2017 | 11:00 AM

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Finance: Using fundamental and technical analysis to gauge stocks

Finance: Using fundamental and technical analysis to gauge stocks

PHUKET: When I decide that a stock could either be worth buying or worth placing on a watch list, the first thing I do is look at the stock’s fundamentals using a stock research and marketing tool called ‘MarketSmith’. Using small cap LGI Homes (NASDAQ: LGIH) as a sample stock, let’s look at some fundamental data that will help decide whether its worth owning or watching. Return on Equity (ROE) is a key measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders’ equity. An ROE of more than 10-15 per cent is good, while LGIH’s ROE of 25 per cent is very hea

Sunday, April 23, 2017 | 02:00 PM

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