GYC Insights
Articles on real-life financial issues written to educate and enlighten.
Why our instincts make us poor investors
The human behavioural instincts that serve us well in most areas can be our downfall when it comes to investing. What methods can we use to stay the course even when our instincts tell us otherwise?
Understand That Economic Numbers and Market Returns Are Not Always Related
Economic numbers definitely have some bearing on how the market performs. GDP numbers, wage increases, consumer confidence, trade and fiscal policy all affect corporate earnings. However, what appears related need not always be so.
Markets at highs: Panic or stay calm?
Markets have been reaching all-time highs. Is it time to sell? We look at the evidence and at what history has to tell us about past instances when markets also reached new highs.
Choose a simple, diversified portfolio for long-term investment success
A simple, low-cost diversified portfolio can beat most investment strategies, and is the best bet for attaining long-term investment success.
Spreading investment risk through diversification
Holding a diversified investment portfolio offers investors exposure to a wider range of economic cycles, reduces risk, and increases the likelihood of a better investment outcome.
Follies of Forecasting - Why market predictions do not work
Investors should not succumb to the noise and distractions from forecasts and predictions, but instead stick to a disciplined, systematic investment plan in order to have a higher probability of making money in the long run.
Buffett's Advice to Layman Investors: Keep It Simple and Keep It Cheap
In Warren Buffett’s latest shareholder letter, he again let loose on the investment community, in particular high-fee active managers – especially hedge fund managers, whom he claims do not provide value to investors.
The Market Works In Cycles
Many investors or potential investors we meet assume that once they put their money to work, they are guaranteed a return. Unfortunately, that is not how investing works.
Guess What? Capitalism Works and You Are Owed a Return
Companies and countries have used markets for years to raise money from public investors. In return, investors receive compensation for the risk they take. But not all companies - or countries - are the same.
Do You Know How Much Your Investments Could Lose?
Do you know how much money your investments could lose? What is VaR and why it is better than the investment industry’s favourite metric - volatility?
The Failure of Market Predictions - Part 2
Wouldn’t it be great to know in advance whether the stock market will rise or fall and position ourselves to profit from it? In reality, nobody can get it right - not even the giants in investing. We show why it is detrimental to one’s health and wealth to play this fool’s game.
A Look Back at 2016
Every year brings its share of surprises. But how many of us could have imagined that 2016 would see the Chicago Cubs win the World Series, Bob Dylan receive the Nobel Prize in Literature, Donald Trump elected president, and the Dow Jones Industrial Average close out the year a whisker away from 20,000?
The Failure of Market Predictions - Part 1
In early 2016, as the stock market was correcting in earnest, market pundits and economists all but proclaimed the end of the current bull market. How did they get it so wrong?
Recency Illusion
Arnold Zwicky defined the Recency Illusion as ”the belief that things you have noticed only recently are in fact recent”. How does this illusion affect your investing decisions?
Overreacting During a Market Crash
Our analysis of markets over a 15 year period shows that markets go up more often than come down. In fact, the best market days typically follow a correction.
When Diversification Isn't A Free Lunch
Diversification has been called the only free lunch in investing. But can investors do even better?