Morning Report Tuesday 10 March 2015
Reminder: if you have not registered for today’s Market Matters webcast at 4.30pm AEST (Investor Update: Low Interest Rates – Yield or Growth?) – click here to secure your spot on the webinar
How do we “play” 4 of the worse stocks in the ASX200 over the last month?
It has been confirmed to me on an almost daily basis that investors are far more comfortable buying a stock that has fallen 10-20%, rather than one making new all-time highs. Unfortunately, human psychology is often an enemy for investors who struggle at rule 1 of investing/trading:
• “Run your profits and cut your losses”.
Having studied Chemical Engineering at University for 3 years, I insist on utilising part of this education, hence I spend a lot of time looking at the mathematics/statistics of the stock market. Consider the below analysis of stocks in the US S&P500 over the last 100 years:
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