Tag Archive: Market trend


It’s simple really. Just change the time horizon so it suits your stance.blog

I’ve seen this play out over everyone’s favorite yellow metal the past few years. Gold is down almost 40% since it peaked in 2011. But it’s still up almost 350% since 2000. Although since 1980, on an inflation-adjusted basis, it’s basically flat. However, since the early-1970s it’s up over 7% per year (or about 3.4% after inflation).

See what I did there? There’s ammunition for both sides of the gold trade to use to their advantage. Continue reading

History shows that mutual fund investors generally increase inflows after observing periods of strong performance. They buy at bloghigh prices when future expected returns are lower, and they sell after observing periods of poor performance when future expected returns are now higher.

This results in what author Carl Richards called the “behavior gap,” in which investor returns are well below the returns of the funds in which they invest. Perhaps with this observation in mind, Warren Buffett once said, “The most important quality for an investor is temperament, not intellect.”  Continue reading

History shows that mutual fund investors generally increase inflows after observing periods of strong performance. They buy at bloghigh prices when future expected returns are lower, and they sell after observing periods of poor performance when future expected returns are now higher.

This results in what author Carl Richards called the “behavior gap,” in which investor returns are well below the returns of the funds in which they invest. Perhaps with this observation in mind, Warren Buffett once said, “The most important quality for an investor is temperament, not intellect.”

In his wonderful book “The Behavior Gap,” Richards recommends asking three questions before you make investment decisions based on your own or someone else’s forecast:  Continue reading

Well this is brilliant on Saturday as a read 🙂images

The Federal Reserve is awaiting
That prices may start re-inflating,
So they can foresee
Unwinding QE,
Whose tapering they’ve been debating.

The Fed will not bother to taper
Its purchase of Treasury paper
‘Til the jobless rate now
And inflation allow
An end to their stimulus caper.
Bernanke must act with agility
To avoid causing stock volatility
‘Til he can discern
A sustainable turn
To price and employment stability.
From :

LIMERICKS ÉCONOMIQUES

Guest post by : Green

The ability to understand and manipulate economic markets for financial gain is a skill that has been watered down over

English: Fijian native trading with white traders.

the years. It seems these days that almost everyone thinks they are an expert in stock and shares, Forex or commodities. The big crash of 2008 and the ensuing volatility in a number of key markets have been refreshing in so much as it really separated the masters from the mice in market trading.

Identifying Trends

Those who have managed to continue to make money during these hard times are the quintessential trend spotters. However in this case they are not so much spotting an individual trend, more the changing methods of how to invest in the stock market. Continue reading

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