So you think you think rationally. Think again

Each day, we respond to problems quickly, automatically and often gullibly, giving undue attention to details that stand out easily. Critical information is often ignored. The best investors are those who can hear through the noise.

If the small cap fits, wear it

There are reasons why small cap stocks have a history of long term outperformance, although recently, the preference for defensive large cap yields has dominated.

Mortality risk could be the death of you

It is unfortunate that super funds and financial planners spend far more time considering investment risk than mortality risk. In future, retirement savings must last much longer, and a study of mortality risk shows how long.

Everyone needs a plan

We cannot afford to ‘make things up as we go along’. We need a plan that addresses short, medium and long term goals, and we need to take action to address those goals now, not later.

Dying alone becomes New Normal in Japan

Japan, with the world’s highest proportion of retirees, can’t build nursing homes fast enough. By 2025, one in three citizens will be 65 years or older, up from 12% in 1990. A lack of long-term care facilities means seniors risk living alone or suffering abuse in the care of resentful relatives.

Small can be beautiful

There are important advantages that relatively small investors have over large institutions. Small can be beautiful, even if the big guys can also do well throwing their weight around.

Nixon’s Mum

Most people see the financial services industry as untrustworthy, but trust could be re-kindled if we practised two easily-stated pragmatic principles. Ethical behaviour is more likely to enhance success, and it isn’t too onerous.

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