‘I can calculate the motions of the heavenly bodies but not the movements of the stock market.’
Isaac Newton in the 1600s after he had been wiped out in a stock market crash
‘Usually, you know a hot sector after the fact, not before.’
Marshall Blume, Finance Professor at the University of Pennsylvania’s Wharton School
Portfolios, like stock markets, are very strange creatures indeed.
I constantly fret over the health of mine – it is my other child, that constantly causes me limitless grief and anxiety, interspersed with the odd moment of euphoria. What makes my behaviour towards my portfolio even more inexcusable is that I also constantly break all the rules advanced by behavioural investment gurus like James Montier ...