One Percenters and First Class Equity Investing
Top 5 of the Week of May 2
This week in the Top 5, Nilesh Shah from The Economist demonstrates what equity investment lessons we can learn from the cricket matches of the ICC World Twenty20 India 2016. And Howard Gold of MarketWatch theorizes that by lightening your portfolio—in part—of certain asset classes from Spring until Autumn you can improve your returns and lower risk over time.
Despite 93% of Millennials distrusting the markets and their lack of investment knowledge, Isvari Mohan, from the Boston Globe, argues that is no excuse for not beginning to invest early. Investment Strategist for Neuberger Berman, Richard Gardiner shares that the key to improving decisions following market pullbacks is by examining our emotional reactions to them. And Joseph Ciolli, of Bloomberg, enlightens us on who jumps the stock market ship following market wrecks…
First Class Equity Investing
- Don’t lose sight of the end of the game; equity wins can happen when you least expect them
- Execute due diligence; if you’re going to play cricket or invest in equity, discover in advance and factor in performance, environment, and ‘weather forecasts’ above all
- Weather the course; markets rally and the game—both cricket and equity investments—can be rewarding
“Sell In May and Go Away”
- Energy: Lighten your portfolio of a few oil or energy stocks for profit taking, but hang on to the rest for the future as the worst of the oil bust is now behind us
- High-yield bonds: Now would be a good time to sell some of those high-yield bonds following the crude oil rally
- Stocks and bonds in emerging markets: With EM bonds in a good place right now, and stocks rallying as much as 25%, take advantage and part ways with them
No More Excuses; Start Investing Now!
- Despite having twice as much money as previous generations, just 26% of Millennial’s invest in the stock market, and only 12% would even consider investing with any surplus funds
- Think big and invest aggressively: aim to outperform everyone else’s portfolio—with long-term thinking—by taking chances and playing the stock market while you’re young
- Do your due diligence: acknowledge your lack of investing know-how, understand your friends and family aren’t the best ones to ask, and seek sound financial advice from a professional
Being Too Emotionally Invested
- Following the start of 2016; the number of bullish investors—those thinking the market will go up—at its lowest in 30 years
- Given the choice; investors react pessimistically and emotionally foremost in the face of market swings and will fail to see any positivity even in light of any
- Be pro-active, create a plan and instigate positive changes to refrain from emotionally triggered reactions by being aware and more patient
“When the going gets rough…
- …the 1 percent start selling.” US shares values saw a loss of more than $10 trillion following the financial crisis from 2007-2009
- Speculation is that the biggest earners have more to lose, increased sensitivity to market shocks or those who earn less are reluctant to sell what they have for potential loss
- Is it emotional trading or are 1 percenters better at timing the market?
Weigh in on this question with us! Share your thoughts and comments in the section below…
Top 5 of the Week is a summarized collection of financial investment articles that we like and think you might like too. Having written thousands of pages of equity strategy and company research between us, we understand the allure of the ever-changing world of finance. Investing is an art form – and like everything, something you can work on and improve at. There are some excellent writers out there on the finance web, some offer a running commentary on today’s market, some are doing research, some have tips on how to Become a Better Investor, and some just lift the cloud of fog behind a lot of financial jargon. Each week we will keep you up to date with the top 5 articles worthy of your attention.
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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article. The Babinow Team doesn’t necessarily endorse any stocks or shares mentioned in the articles or the author of such articles linked to and summarized in Top 5 of the Week and cannot guarantee the accuracy of its information.