The best of what we read, watched and listened to this week

The best of what we read, watched and listened to this week

Photo by Peggy Marco on pixabay.com

Not all of the predicted consequences of the UK leaving the European Union have yet come to pass but a few are already making themselves felt.  Brexit: Five surprising consequences.  [4 min read]

The US stockmarket delivered spectacular returns in 2020 considering the economic environment yet most of this is attributable to only the few ‘FANGMA’ stocks Facebook, Apple, Netflix, Google, Microsoft and Amazon. However, towards the end of the year this started to change.  A useful lesson in the benefits of diversification – also known as not holding enough of a stock to make a killing on it or to be killed by it. [2 min read]

For many years, financial regulators have required purveyors of investment products to point out that past performance is not a reliable guide to the future.  However, when the trustees of pension funds review their existing investments, they often end up switching to a different manager on the basis of recent superior performance.  As the review takes place every few years, the switch unfortunately often results in hiring a new manager just as their style goes out of favour with the market and the outgoing one starts to outperform.  The Definition of Investor Insanity. [3 min read]

While clickbait adverts on the internet continue to promote (often via extremely dubious fake news stories) trading in cryptocurrency as a route to rapid wealth, one of the early adopters sounds a note of caution regarding its suitability as an investment.  Bitcoin Prices Are Likely Manipulated, Research Affiliates Warns.  [3 min read]

It’s hard to argue that for those fortunate enough to be able to do so, the government’s advice to work from home has engendered a huge shift in people’s work/life balance over the last 10 months.  While we may not give up the benefits of working together in shared offices altogether when the pandemic ends, it is hard to believe that we will not retain at least some of the flexibility that we have experienced.  And reducing the amount of travel that we do both reduces our exposure to risk and damage to the environment, as well as extending the effective life of our cars. The Work-Life Balance Revolution. [3 min read]

While investing inevitably involves some degree of prediction about the future, there can be a world of difference between how confident it is reasonable for us to be over an investing lifetime compared with over the next few weeks or months. When and How Should Investors Make Forecasts? [4 min read]

If you’ve ever wondered what happens when the telephone rings while you’re out and you have a cat, this may give you an insight. [0.43 video]

We hope you have a good weekend.

Charles and Rob