Young and Invested

Is this time any different?

Another month, another year, another attempt at a correction and another inevitable bounce. The chart below highlights the sentiments carried by many investors. All the believers of the mantra that “Nothing ever goes up in a straight line”, have been forced to challenge their beliefs when every attempt at a correction in July, August and [...]

Will Stock History Repeat in 2010?

The S&P500 index has never declined in the second year of a bull market. This is applicable to all individual sectors in the S&P as well, which have never placed an overall decline in the second year of a bull market. To elaborate more on this statistic, over the last half-century, the S&P 500 gained [...]

The False Mantras of 2009

As we reflect on the lessons learnt from 2009, it’s important to look at which theories have not come to fruition, or at least not yet. I look at the main themes and mantras that we heard echoed by almost every market expert but which we are still waiting to see in reality. In a [...]

Warren Buffett on General Electric

As most of you young and invested people should have heard, Warren Buffett recently purchase a significant stake in General Electric (GE). As you should also know, Mr. Buffett is arguably the most renowned value investor in the world, using the magic of compounding returns to grow his investments at rates often averaging 20-25% annually. We [...]

Bears Going into Hibernation

In the last two weeks, Warren Buffett has put about $8B into the market. Obviously, Buffett is a very wise man, and is known for buying when there are sufficient “discounts” on the stocks that interest him. Many thought that his vote of confidence would have brought turnarounds to the aching markets. But traders and [...]