ASX Education: The Anatomy of Shorting

Each week ASIC publishes a list of stocks that have been “Sold short”. In basic terms it means stocks that have been sold by people who don’t own them. It is not that easy to genuinely short a stock. You can do something similar through CFD accounts which are simply a bet on a price…

Read more

ASX Education: The inefficient market hypothesis

INEFFICIENT MARKET HYPOTHESIS You may have heard of ‘EMH’, the ‘efficient market hypothesis’. Anyone who’s read the introduction to any text book on financial theory can tell you all about it. EMH basically says that you can’t beat average returns because the markets are at all times “informationally efficient”, that is to say all prices…

Read more

ASX Education: Ten Investment Rules

I have been writing the Marcus Today newsletter for over twenty years and read something called "Farrell's Rules" over thirty years ago. There is an article about 'Farrell's Ten Rules' below which you might find interesting, but as I read them, I realise they are a bit old, and I'm sure we can do better.…

Read more

ASX Education: Why you don’t matter

Westpac had its results on Monday. Whenever a big company has results every significant fund manager will come into work the next day to find ten pieces of research (fifty in the USA), one from each of the big brokers, sitting on their desk selling ten different opinions about the result. Fund managers are like…

Read more

ASX Education: Your Best Investment Ever

I have an article in The Age Money section. It's one to send to your kids. Click below and read it online (it helps it go viral), or you can read it below. Or just copy and paste the image and the link and send it to the kids by email. https://www.theage.com.au/money/investing/the-best-investment-in-the-whole-world-20180605-p4zjkr.html I have been…

Read more

ASX Education: Exchange Traded Funds

Australian investors who want a diversified portfolio in a particular asset class without having to manage it themselves are able to Exchange Traded Funds (ETFs) on the ASX. ETFs are exchange traded on the ASX. That means you can buy and sell them on the ASX just like shares. They trade and settle in exactly…

Read more

ASX Education: Knowing the unknown

In order to make any money in the stock market you need to focus on the unknown and stop wasting your time on the known. Every year the top and bottom performing stocks are not the stocks the market predicts most accurately, those stocks will hardly move, the big money is always in the stocks…

Read more