Investing

Whether it is called "systematic trend-following", "momentum trading" or "turtle trading", it all comes down to entering trades on the basis of markets breaking out from previously established ranges and following some basic rules thereafter. It requires no special understanding of any given market - just a healthy respect for the price action - and can make you a lot of money in the process. Here are the details.

This comparison of stock values across all major world markets and forecast returns over the next five years suggests that, while this is not a “back up the truck” opportunity, it’s not bad either, particularly given how unappealing bonds and cash are at current yields.

Money illusion is a longstanding concept in economics that has enormous significance for you if you’re a saver, investor or entrepreneur. Money illusion is a ruse performed by central banks that can distort the economy and destroy your wealth. Let me explain.

It was only a few decades ago that currencies around the world were back by gold which meant that whatever piece of money that people used in their day-to-day lives represented a real amount of gold held by that government. Today, the main influencing factors on exchange rates are as illustrated in the infographic below.

This infographic shows how many million barrels per day the TOP 10 oil and gas companies produce & how many years global oil reserves are expected to last.

Earnings may be a consideration when investing in the stock market, but whether you make money or not depends on the extent of monetary inflation. The rate of inflation has been twice that of the gains seen in the Dow Jones since 1920 but currently, while Wall Street may be seeing a “bull market”, the inflation adjusted returns investors receive from rising share prices aren’t compensating them for the decline in purchasing power the dollars their profits are denominated in. [Let me explain further.]

Is it time to sell all of your stocks because we’ve seen huge gains over the past five years? Not necessarily. It all depends on your time horizon and what kind of investor you are. Let me explain.

We are not as smart, or as unbiased, as we think. Outside influences can greatly - and adversely - affect our decision making. Here are two ways in which “doing less” can probably "make us more" in our investing lives.

Asset allocation is the most essential factor in building a high performing portfolio. Paying attention to the risk of each asset class allows you to create a portfolio that can beat the market in good times as well as bad.

Events and conditions do not make investors behave in any particular way that can be identified as shown in this analysis of the supposed relationship between interest rates and stock prices. So much for the popular claim that "Interest rates drive stock prices"!