Lauren Hua

Stock market crashes and their recovery

A stock market plunge can leave investors very nervous and create panic. However the odds are that stocks prices will be higher in three to five years after a bear market. Bull markets follow bear markets so investors who panicked and sold at the bottom of the market lost out on the gains when the market recovered. But overall if you look at the stock market on a long term view you will find that there are more years where …

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Why fund managers are doing so badly

A recent report from Standard & Poor’s (S&P), the SPIVA report, has uncovered that over 80% of Australian fund managers have underperformed the index over 15 years. Investing in a managed fund is generally perceived as an easier way to invest. It can be a set and forget exercise where the investor does not need to monitor their investments. However, the convenience of a managed fund comes at a cost. Management fees can often be quite high. Often these fees …

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5 Qualities of a Great Stock

There are 2,258 listings on the Australian Stock Exchange (ASX). With the amount of stocks of available to the investor, its easy to see how one may not be able to see the wood for the trees. Finding a good stock is not an easy exercise but these are the five characteristics that a great stock should possess. 1.Increasing profits A great stock is a company which has consistent profitability over time.  This may sound logical but during the dot.com …

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The bitcoin bubble- what is a bubble and how are they created?

We have had numerous asset bubbles in the past such as the tulip mania, the US housing bubble and the dot-com bubble. The latest bubble is the bitcoin bubble. All these asset classes rose in value due to irrational exuberance but the same characteristics were in place which drove up the prices. The price of bitcoin has fallen 80% from the peak in December 2017. All asset bubbles burst after a period of time. In this article we discuss the …

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5 Habits of a Successful Investor

Successful investors have not all been born into wealth. Many have developed into successful investors by implementing effective habits in their lives. Many high net worth individuals did not become wealthy overnight.  They have been planning their financial future and strategizing ways to achieve their financial goals. So, the question is, what are the successfully habits of a successful investor? Here are the tip 5 habits which successful investors use to achieve financial success. 1.They have a diversification strategy Diversification …

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