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Category : Investment

Roller-coaster of emotions within Investing

  • Willard Lloyd
  • February 11, 2020
Reading Time: 4 minutes

short-sighted or blindsided…rollercoaster of emotions…and more…

A 330% return in eight months.

Sounds impressive, doesn’t it?

It’s the kind of short-term gain that every investor dreams of. But it’s not the kind of return that’s easy to achieve.

Typically you’d have to rely on a very tiny stock for an explosive result like this. Companies that have plenty of upside potential due to their diminutive market caps.

But that’s not the case for my example above. Rather, that 330% return came from a multi-billion NASDAQ stock. A very divisive stock at that…

It was Tesla Inc [NASDAQ:TSLA].

2020 economic and market outlook: The new age of uncertainty

  • Willard Lloyd
  • February 5, 2020
Reading Time: 2 minutes

Ongoing geopolitical tensions, overshadowed by the US-China trade war and Brexit, are expected to stunt global economic growth in 2020.

Weaker global growth will have a flow-on to investment markets, fuelling further periodic bouts of volatility, and investors should factor in the likelihood of subdued returns.

2020 Vision for Financial Fitness

  • Willard Lloyd
  • January 16, 2020
Reading Time: 3 minutes

What better year to have your financial health in tip top shape than the one requiring 20/20 vision!

The start of any year is always a good time to assess your financial situation and make sure you are on track to achieving your dreams, but the start of a decade is even more significant.

Turn Resolutions into Strategies for Success

  • Willard Lloyd
  • January 10, 2020
Reading Time: 3 minutes

If breaking New Year’s resolutions is as much a tradition as the act of making them, you’re not alone – about one-third of New Year’s resolutions don’t even make it past the first month.i So why not try something different this year?

The main reason resolutions fail is because they’re often formed without a strategy. A strategy has clear directions, timelines and consideration of resources needed, which is why they are much more likely to be acted upon.

If you’ve already set resolutions for 2020, it’s time to develop a strategy to achieve them. Equally, if you’ve avoided making resolutions, now is a great time to think about what you want to achieve over the coming months and develop a road map.

 

Benefits of ETF investing.

  • Willard Lloyd
  • December 9, 2019
Reading Time: 2 minutes

Investing your money is all about trying to grow your wealth over a while. ETFs are one way to do this over the long term and they can provide benefits like diversification, exposure to a range of companies in one investment and generally lower costs. Like all financial investments, ETFs come with a level of risk. We outline some benefits and risks for you to think about.

How to be a Millionaire!

  • Willard Lloyd
  • November 22, 2019
Reading Time: 6 minutes

Most people want to be millionaires…how much do you need?…the key is to find investment returns better than the basic average of 6.7%…and more…

There are two kinds of responses to this

One would be people that genuinely want $1,000,000 as it’s life-changing money.

The other would be the people that see it yet do nothing at all. They think they’ll never get it, someone else will so why bother.

Now it’s unlikely you’ll ever get $1,000,000 legitimately for doing nothing. But what if I told you that you could get $1,000,000 without too much effort? Again, there will be two kinds of people that consider this.

Some will be interested in how they could get $1,000,000 without too much effort. Then there will be those who think it’s not possible and it’ll never happen for them, so why bother at all. 

Now if you think you’ll never get close to being a millionaire, then stop reading. This isn’t for you. But if you want to understand how a simple strategy can be put into place long term to open up the possibility to be a millionaire…read on.

 

What are ETFs?

  • Willard Lloyd
  • November 1, 2019
Reading Time: 2 minutes

Like a traditional managed fund, an exchange-traded fund (ETF) offers the opportunity to invest in a portfolio of securities, such as shares or bonds.

As with a managed fund, each ETF unit represents an undivided interest in the underlying assets. In Australia, this interest is usually in the form of a unit in a unit trust. ETFs and managed funds also both offer professional management, so you don’t have to keep track of every security your fund owns. However, ETFs are different in that they can be traded throughout the day on an exchange at a market-determined price.

Most ETFs use an indexing approach. Index ETFs are built so that their value can be expected to move in line with the indices they seek to track. For example, a 2% rise or fall in an index should result in approximately a 2% rise or fall for an ETF that tracks that index (before fees and expenses).

Short-Sighted Risk Aversion

  • Willard Lloyd
  • October 31, 2019
Reading Time: 4 minutes

Would you take this deal? I’m going to flip a coin. If it comes up heads, you win $200.00. If it comes up tails, you lose $100.00.

Most would decide not to play. It’s just not worth it. The odds are not in your favour. It’s nice to win $200.00 but nobody wants to lose $100.00.

This mindset applies to clients who fret over their account balances daily. In a bad market, the odds appear to be heavily stacked against us. It’s just not worth taking the risk when every day brings bad news when the odds are not in our favour.

What if you offered to flip the coin one hundred times? That would give somebody pause. The odds appear better. They may not be, but the long game is more appealing. It seems we have a better chance of winning over time.

Australia is rich, dumb and getting dumber…

  • Willard Lloyd
  • October 14, 2019
Reading Time: 3 minutes

Bangladesh, Cuba, Iran, Mali and Turkmenistan share an unexpected connection to Australia, and it isn’t membership of a tourist destination hotlist.

All are among the economies that are so lacking in complexity, and have such limited natural opportunities to develop new products, that Harvard University recommends they adopt industrial policy straight out of the post-colonial developing world: the “strategic bets” approach.

The advice comes from the Harvard Kennedy School’s Center for International Development, which two weeks ago launched an online database of 133 economies that combines remarkably rich data with beautiful presentation.
Designed to map, literally, the economic progress and opportunities of the industrial and non-industrial world, the Atlas of Economic Complexity exposes an under-appreciated truth about Australia.
The enormous wealth generated by iron ore, coal, oil and gas masks, and probably contributes to, an economy that has failed to develop the industries needed to sustain its position among the top ranks of the developed world.

Put simply, Australia is rich and dumb and getting dumber.
On the primary metric used in the database, an index of economic complexity, Australia fell from 57th to 93rd from 1995 to 2017, a decline that is accelerating. Australia’s top trading partner, China, rose from 51st to 19th over the same timeframe.

How defensive stocks ride out rate volatility

Reading Time: 3 minutes

Glenn Freeman  |  03 May 2019

 

Utilities and infrastructure companies are usually described as a “defensive” asset class because they deal in long-term contracts that help them ride out volatility – a factor that also affects their reaction to interest rate movements.

And like property trusts, utilities and infrastructure companies also have bond-like characteristics: they may not grow very quickly, but they provide a reliable income stream over the longer term.