Thursday , 27 February 2020

Asset Allocation

Stocks: Irrational Exuberance Has Returned! Here’s Why

It wasn't so long ago that irrational exuberance over the housing market had seized investors' logic, and the same thing is happening to US stocks right now. Fair-weather investors are abandoning gold equities and jumping into the US market in the hopes of making an easy buck, just as people bought property near the housing peak hoping to flip it before those adjustable-rate mortgages reset... My advice: don't gamble your savings on the hope that there will be a greater fool who will come along and buy your inflated assets at even higher prices.

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Invest In South Korea – Here’s Why & How (2K Views)

The financial media gives plenty of attention to China and Japan, but one Asian country that just doesn’t seem to receive its due is South Korea. Some of the most-attractive investment opportunities in the world can be found in South Korea. In fact, the average South Korea stock is about 40% cheaper than U.S. stocks on a price-to-earnings basis, trading at an average of 9.6 times trailing earnings compared to 17 times for U.S. stocks.

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Performance Update/Comparison of Global Asset Classes, US Equities & Gold (+2K Views)

US equities remain the only major asset class not [to] experience a bear market or an annualised negative performance during the current investment cycle. This is very rare. The last time US equities posted even a -1% annualised total return was back in middle of 2009, almost five years ago. [As such,] this asset class now presents the most risk to long term investors. [Read on, there's more!] Words: 676; Charts: 3

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Financial Markets to Culminate In One of These Two Extreme Outcomes

The financial markets endgame is 'binary' with a likely outcome of 'one of two extremes'. This is an extremely important thing for everyone to think about. Below is more of what Mohamed El-Erian believes investors ought to be considering in these prevailing uncertain times and my comments/expansion on those views.

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Investors Beware: Armageddon Lies Ahead for Municipal Bond Holders!

The Securities and Exchange Commission is worried that municipal bankruptcies, combined with an expected spike in interest rates, means that the muni bond market could face "Armageddon" with devastating consequences for the individual investors (74% of the total) who hold the paper of which many are retirees. Words: 490

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