If you’ve read this blog before, you’re probably familiar with the phrase “evidence-based investing”. But what exactly does it mean? After all, most investment professionals would claim to base their philosophy on some form of evidence. But that doesn’t mean they’re worth paying any attention to.
One of the ironies of investing is that although it’s actually very simple — or at least it should be simple — that doesn’t mean it’s always easy.
No investor enjoys a bear market, but how do you at least stay calm and rational? How do you keep your head when so many other people seem to be losing theirs?
We generally encourage our clients not to follow the ebb and flow of the global stock markets. But every now and then, you can’t easily avoid it, and we’re at one of those moments now. Share prices, and specifically price falls, are once again front-page news. So, what’s going on? And what, if anything, can investors do about it?
Gene Fama, the Chicago-based professor whose ground-breaking research on investing earned him the Nobel Prize, rarely gives an interview. When he does, it’s worth taking notice. He has just given an hour-long interview to the Rational Reminder podcast and, once again, he doesn’t disappoint.
It wasn’t supposed be like this. Just when we were hoping to enjoy restriction-free living in the wake of the pandemic we’ve been bombarded with gloomy news on the economic front — particularly rising inflation.