Enterprising Investor Forum
Total live articles: 9
Questions: 0
Answers: 0
We are not professional financial advisers and we do not claim to be experts on any of the subject we will write about. We simply want to share our perspectives, not only on interesting stock plays but especially on exciting companies which we feel are undervalued and/or under the Street’s radar.
Recent Activity
Following the recent rise in commodity prices and emerging market, we have a feeling that some investors are starting to forget that investing is not a game and it is far from being easy. Investors in ETFs and funds exposed to these sectors are starting to brag about 25+% gains at dinner parties and find it hard to believe how some money managers are struggling in recent times.
Investors often wonder how many stocks they should own and despite the fact that, we think, most people understand that just owning 1 or 2 stocks can be quite risky, we think that most investors would be surprised by the small number of holdings that are needed to provide significant diversification.
In his book ‘A random walk down Wall Street’ Burton G. Malkiel makes an interesting point on the fact that your psychological makeup will have a big influence on the risk you are willing to assume.
The markets keep on experiencing violent swings and unfortunately, this is not a new phenomenon and it is not the last time it will happen. How is it possible that a stock can be down 15% during a session on absolutely no news? Well, this is largely due to the psychology surrounding the markets and investor fears.
If you are interested in the investing world and have read some of the books or stories on the late 80s on Wall Street, you will have come across Liar’s Poker (also the title of the book written by Michael Lewis about his experience as a bond salesman at Salomon during this period). What is this game and how is it played..
What is all this talk about the “Carry Trade”? Everyone keeps on talking about it but what is it? What does it mean? Well, it’s not as complicated as one could think....
What should investors do when markets are experiencing a lot of volatility and when everyone is starting to panic?
Having already talked and ranted about the perils of trying to time the market we thought that it was time to give readers some numbers to help reflect on this issue.
