Jonathan Davis says investors’ disregard for risk has paid off handsomely in 2006 — but it may not in 2007 A good general rule for investors is to take no notice of consensus predictions about what is going to happen in the next 12 months. The track record of year-end investment punditry is consistently poor.
Hedge funds, you read here in June, are often riskier than they are made out to be. Putting your money into ‘a fund that blows up, closes down or disappears with all your money’, I suggested, is a real risk for the unwary investor. The danger, I could have written, is that you will find
What has been the single most successful and socially useful investment innovation of the last 30 years? Although paradoxically few investors will know what it is, or why they should be grateful that it exists, my nomination is the index fund. On 31 August this year, largely unheralded in the media, this dull but remarkable
Twenty-seven years ago, a shy 29-year-old engineering graduate from Cambridge University left his job as a trainee fund manager at an obscure South African investment company in London. In a move that some of his colleagues regarded as foolhardy, he had accepted an offer to join a little-known private American firm that had never sold
Conventional wisdom in the investment world is that it is hard, if not impossible, to call the really important turns in the stock market. You will struggle to find a professional investor who admits to being any good at market timing, and even more so to find a finance professor who will do anything but