GYC Insights
Articles on real-life financial issues written to educate and enlighten.
Rates Got You Down?
The US Federal Reserve has lowered interest rates by 0.5% during their September 2024 meeting. So far, stock markets have responded positively, but interestingly, bonds have not started to rally as expected by many.
Successful Technology, Poor Investment
Commercial airlines, automobiles, the radio, and the internet may have changed the way we live but it has failed to deliver returns to investors.
Easy Come, Easy Go
Peloton is down -95%, Zoom -88%, Moderna -84%, and Etsy -83% since their peaks during the Covid-19 pandemic. Such a severe wipe out over a couple of years is pretty terrifying to imagine, especially when it comes to your portfolio.
Positively Uncertain
The long term average return from investing in the global market is around +7.36%/year. But in reality, what we get each year can be very far from that number (e.g. almost -20% in 2022, or almost +30% in 2019).
Current-cy Pains
The lack of SGD investment options as well as the need for a global opportunity set naturally comes with exposure to foreign currencies. Is your wealth poised to take on forex movements?
Ain’t No Pleasing You
+154% in earnings, but -8% in share price. Nvidia's announcement has puzzling effect on investor behaviour.
Beware of Statistics
On average about 100 of the funds available at the beginning of any given year disappear (they are liquidated or merged).
A Clockwork Cut
By the time the Fed announces and executes rate changes, you'd be too late.
Are You Ahead of The Crowd?
In the Challenger tragedy of 1986, what took a 5-month investigation to determine, the stock market figured out in a matter of minutes.
Sahm-things Are Never Certain
Indicator with perfect record of identifying recessions might be wrong for the first time in more than half a century.
Markets in Turmoil
Some investors might cut their investment exposure due to recent fearful headlines to, but that would be a big mistake.
A Window of Opportunity
Global markets are up almost 10% year-to-date, leaving some investors to feel like they have missed the boat, but opportunity’s knocking during this season for several reasons.
Slump, Buy Then, & Fair Risk
1 out of 100 day traders reliably beat the market. 13 out of 100 gamblers leave the casino a winner.
Dividend We Fall
Important pitfalls to watch out for when focusing on a dividend yield strategy.
Divi-Then, Now What?
Research shows that the best performing funds are often the ones that do not pay dividends. In fact, it is the highest dividend paying funds that underperform those that pay no or low dividends.
What The Fed
More than 500% less returns. That’s what would’ve have happed if you made investment decisions based on what the Fed was going to do at the start of 2024.