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Understanding Momentum
Since its initial discovery by DeBondt & Thaler in 1985, the momentum effect has been documented and researched in many markets worldwide. Stocks which have outperformed in the recent past tend to...
View ArticleGrowth or Income?
Most investors face a decision as to how much of their portfolio to allocate to growth investments and how much to income investments. The mind-set of many income investors is that they cannot afford...
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To sell or not to sell?
Recent acquisition Northern Star Resources [NST] in the ASX 200 portfolio is a great example of the conundrum faced by long-term investors when a new stock leaps out of the starting blocks....
View ArticleDiversification – the only ‘free lunch’ in investing
Diversification is often referred to as “the only free lunch in investing” because it affords investors the opportunity to reduce investment risk without reducing returns. Most investments involve a...
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When to sell and when to buy?
Investors are faced with the same emotional tug-of-war at every correction: Do I sell and abandon my positions or do I sit tight and ride out the storm? Here are a couple of useful perspectives: What...
View ArticleShare purchase offers
Followers of our ASX 200 Momentum strategy should have recently received a share purchase offer from Ardent Leisure Group [AAD] and may receive another from Challenger Limited [CGF] in the next few...
View ArticleTo err is human
From Miles Udland at Business Insider: [James O’Shaughnessy of O’Shaughnessy Asset Management] relays one anecdote from an employee who recently joined his firm…. O’Shaughnessy: “Fidelity had done a...
View ArticleMarket turbulence
The quarter-end sell off may depress stock prices for a few more weeks, but it is important to stay in the market if you are investing with a long time horizon. Inexperienced investors tend to sell at...
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A tough time in the market
This has been a tough few weeks for investors and may continue for several more. My advice, however, is: Don’t change your strategy. If your plan was to stay in the market and ride out secondary...
View ArticleEliminating emotional bias
Selling pressure from the September quarter-end is now abating. Although we may see further tests of support, this is likely to be followed by a surge in buying from long-term investors. At which point...
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Subscriber Update
ASX 200 Prime Momentum Sirtex (SRX) has been a stellar performer in the portfolio since August 2014. Preliminary study results for their SIRFLOX oncology treatment, however, were disappointing and the...
View ArticleConcentrated Portfolios: Do they enhance performance?
I mentioned last week that concentrated portfolios tend to outperform widely diversified portfolios in the long-term. This 2013 article from Money Management offers support: Fund managers who invest in...
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