Are you your own worst enemy? The psychology of investing

One of the biggest problems investors face – is themselves! Numerous academic studies prove that investors consistently underperform the investments they invest in. They face the same emotional issues as gamblers – taking too much risk when they’re winning, and...

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How safe are bricks and mortar?

Many investors only invest in bricks and mortar, believing that, regardless of what else happens, they’ve still got the property. But history tells a different story, with underwhelming price performance in real terms and many pitfalls...

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What you don’t know about risk can hurt you

All investments come with risk Short term government bonds are considered to represent the risk-free rate of return, although history shows the world is littered with defaulted government bonds, so all investments involve some element of risk. At the lower end of the...

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How diversified are you … really?

The basic theory behind diversification is to reduce risk by not putting all your eggs in one basket. It sounds simple, but it is one of the most poorly understood areas of investing. Many people think that because they own a dozen or so shares, or a few...

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The most common investment mistakes – and how to avoid them

Most investors make a lot of mistakes over their lifetime of investing. The following are some of the more common mistakes, as well as handy tips on how to avoid them. Taking too much risk – period. This is a very common mistake and goes against the basic logic of...

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Downside protection – and why you need it?

Most investments perform well when economic conditions are favourable. What investors need most, in order to balance their portfolio, is an investment that has the ability to perform well in bad times, i.e. when economic conditions deteriorate and the share market is...

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