atans1

Investment advice for 2013

In Financial competency on 03/01/2013 at 5:05 am

The old adages about investment – run profits, cut losses, keep costs down, reinvest dividends, stay invested – survive for a reason. They have been proven right, year in, year out.

Stay invested, or increase exposure, in equities esp in stocks that consistently payout good dividends.

Think about investing in Jappo equities, and soft commodities’ plays (Olam?). Olam’s debt looks tempting.

Update: Interesting point. Richard Bookstaber once attributed the evolutionary success of the cockroach to coarse decision rules: it ignores most of the information around it and responds only to simple signals. Investors do something similar when confronted with hopeless complexity. They boil it down to a binary question: disaster/no disaster. Then they ignore all the idiosyncratic inputs and ask: what does experience suggest the probability of disaster is?

http://www.economist.com/blogs/freeexchange/2013/01/markets-and-cliff

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 210 other followers

%d bloggers like this: