Do technology stocks generate better returns than non-techs? The conventional wisdom hints that they do. Business Insider (22 July 2022) encapsulates it: tech stocks “offer some of the best growth potential, but – like most high-reward investments – come with high risks too.” Mainstream financial theory underpins this inference. “A positive correlation,” says Investopedia, … [Read more...] about Tech Stocks Outperform: Truth or Myth?
Archives for August 2022
Why inflation is and will remain high
Everybody knows that consumer prices in Australia, Britain, the U.S. and other countries have risen rapidly over the past year, and most investors know that they’re presently increasing at rates unseen in decades. But seldom does anybody ask: what is inflation? What, ultimately, causes it? And because they don’t ask these questions, the crucial one escapes them: have the … [Read more...] about Why inflation is and will remain high
Shun stock-pickers – choose investors
Ally Selby (How the #1 picks went from hero to zero in just 6 months, 12 July) reckoned that the January-March quarter was “tough, tiresome and damn it, sometimes terrifying.” April-June, she added, was even worse: “Only three out of Australia’s (18) finest stockpickers’ highest conviction calls are in the black, while the rest have slid (some more violently than others) into … [Read more...] about Shun stock-pickers – choose investors