Moneyterms: investment & finance explained

There is no such thing as an internet company

Monday, 20th July 2009

There is no such thing as an internet company. From an investor’s point of view (and most others) the category simply does not make sense, unless interpreted in a much narrower way than it usually is.

Two (six?) types of efficient markets

Monday, 20th July 2009

This blog post points out the efficient markts hypothesis can either mean that prices are correct, or that there is no free lunch: that it is not possible to beat the market without taking on extra risk. I am not sure that this is a very scientific distinction, because I do not see how to test the difference.

How and why you can beat the market part one: irrationality

Thursday, 2nd July 2009

I promised (on both a comment on Interactive Investor and an earlier post here) to explain why I think it is possible to identify areas of market — or how to tell when every one else is wrong.

Financial advisers to be independent

Friday, 26th June 2009

The FSA has finally decided that it would be a good idea for "Independent Financial Advisers" to actually be independent. One would have thought it completely obvious that a salesman on commission was an unlikely source of impartial advice. It has finally become obvious to the regulator.

Active investors lose

Wednesday, 24th June 2009

I was wondering whether this was worth blogging on again, but Richard Beddard made up my mind with his attack on the efficent markets hypothesis, and his defence of active investing.

Crowdsourcing investing

Wednesday, 24th June 2009

A number of websites have attempted to crowdsource stock-picking. This shows a fundamental failure to understand the markets. Attempts to crowdsource investment research are not much better.

Who should have known the crunch was coming

Sunday, 15th February 2009

Who should have known that the credit crunch and ensuing recessions were possible, let alone likely? I think I can safely say far, far more people than those who actually did — not least because those few did try to warn the rest of us, but because there were other indications of trouble ahead.

Gold bulls beware

Sunday, 15th February 2009

Gold bulls have been arguing for years that demand growth would come from growing jewellery sales in emerging markets. Now they are arguing that gold is counter cyclical and demand will be driven by investors globally seeking a safe haven asset. They seem to be forgetting what is happening to demand in emerging markets.

The moral of Woolworths

Wednesday, 17th December 2008

The failure of Woolworths has (naturally) attracted a huge amount of comment and analysis, but there is one general lesson about retailers that I think needs to be highlighted.

The Irish (economic) problem

Friday, 14th November 2008

The numbers in this article on the damage an Obama clamp-down on tax havens could do to Ireland ought to be badly frighten anyone exposed to the Irish economy.

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