Knowledge is Power: Costs Matter, Cash Machines and Purity Concerns Edition

‘Keep calm and carry on’ as FTSE tumbles 2% (CityWire) ‘We are, in economic terms, all Japanese’: Paul Krugman (Financial Post) Is this the end of Japan’s bull market? (MoneyWeek) Avoiding stocks? (Fidelity) Does Behavioral Investing Make Sense Anymore? (AllianceBernstein Blog) Costs matter: Are fund investors voting with their feet? (Vanguard) Purity Concerns: German Beer Brewers Foaming over Fracking (Der Spiegel) …

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Is Market Timing A Good Investment Strategy?

Timing the market is not a good idea for most investors. Following this strategy is especially detrimental to long-term investors. Short-term investors also should avoid this strategy since even shorter time periods timing the market usually leads to lower returns. Investors holding equities for less than five years can be considered as short-term investors. Proponents …

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OECD: Income Equality Rises After The Financial Crisis

The OECD released on a report last week discussing rising income equality and poverty since the global financial crisis. The report noted that income inequality based on the gini coefficient actually increased in the past few years in developed countries. This is not surprising as the poor and middle-class suffer more as jobs disappeared and many …

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Impact of Consolidation in the U.S. Airline Industry

Earlier this year I wrote an article discussing the pathetic state of the airline industry in the U.S. due to consolidation of carriers. For travelers it has become a nightmare flying from Point A to Point B. Equity investors have treated most airline stocks like rotten fish that are best avoided at all costs. A …

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A Short Note on Lloyds Bank and Royal Bank of Scotland

Lloyds Banking Group (LYG) and Royal Bank of Scotland(RBS) are two of the top five banks based in the U.K. Both these banks used to have solid dividend yields and performed well up until the credit crisis of 2008-09 hit. In order to prevent the banks from collapsing due to heavy losses the British government …

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