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Have Japanese equities turned a corner?
There has been no better advertisement for global diversification in modern times than Japanese equities. 35 years ago, Japan was bidding to overtake the US as the world’s largest economy. Its “economic miracle” looked set to continue as the Nikkei 225 index hit an all-time high of nearly 39,000 points in December...
Are passive investors more disciplined?
An argument that’s often made is that indexing advocates like myself put too much emphasis on the cost advantage that passive investors have over active investors, when a bigger determinant of future returns is investor behaviour. It’s certainly true that our...
Do active managers deserve credit when they outperform?
When we succeed, it’s human nature to want to take the credit. Say we smash an exam, land a top job or win an award, we like to put it down to our own innate talent or hard work. The uncomfortable...
Index fund investors can also win in the short term
Investing is a long-term commitment, and that’s especially true for index fund investors. Indexers have time on their side. Because of the effect of compounding costs, it becomes progressively harder for active investors to outperform their passive peers the longer they...
Timeline and Vanguard — how do they compare?
Timeline and Vanguard LifeStrategy are both excellent solutions for UK investors. But which should you choose? ROBIN POWELL takes a closer look. I generally try to avoid recommending specific investment solutions. I’m a journalist, not a financial adviser, and in...
U.S. public pensions are gambling with other people’s money
Currently around $5.6 trillion is invested in U.S. public pensions. Trustees have an ethical and fiduciary duty to ensure that money is carefully managed. A nearly universally accepted assumption is that, unlike most individual investors, large institutional investors can beat...
Doing nothing is underrated
Early in life we learn that doing things to improve our situation is a positive thing. But it doesn’t work like that in investing. Most of the time, doing nothing is the best approach. Do you ever find yourself moving...
