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Jerome Powell chairs the Board of Governors of the U.S. Federal Reserve. His speech at the Fed’s Jackson Hole Symposium disappointed and even shocked many people. It’s been widely cited as the cause of plunges of between 3% and 4% in American markets on that day, as well as falls … [Read more...] about Why Jerome Powell’s speech shouldn’t have surprised you

Do technology stocks generate better returns than non-techs? The conventional wisdom hints that they do. Business Insider (22 July 2022) encapsulates it: tech stocks “offer some of the best growth potential, but – like most high-reward investments – come with high risks too.” … [Read more...] about Tech Stocks Outperform: Truth or Myth?

Everybody knows that consumer prices in Australia, Britain, the U.S. and other countries have risen rapidly over the past year, and most investors know that they’re presently increasing at rates unseen in decades. But seldom does anybody ask: what is inflation? What, ultimately, … [Read more...] about Why inflation is and will remain high

Ally Selby (How the #1 picks went from hero to zero in just 6 months, 12 July) reckoned that the January-March quarter was “tough, tiresome and damn it, sometimes terrifying.” April-June, she added, was even worse: “Only three out of Australia’s (18) finest stockpickers’ highest … [Read more...] about Shun stock-pickers – choose investors

It’s “an article of faith among Wall Street research departments,” wrote David Dreman in Contrarian Investment Strategy (1979): “nothing is as important in the practice of security analysis as estimating the earnings outlook ... Forecasting is the heart of most security analysis … [Read more...] about How experts’ earnings forecasts harm investors