Wonder shares and sectors that fall to earth
Article Abstract:
Speculation can become a mania during a boom, and can undermine the rationality and efficiency of markets. Bubbles are easy to identify with hindsight. Real estate bubbles in the United Kingdom have sometimes ended with crashes, as occurred in 1974 and when interest rates rose after the late 1980s. There are forecasts that internet stocks could become bubble investments. There are a number of reasons for this view, such as the possibility that technological change may hit internet companies before they have become profitable.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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Why buyers should beware of equities
Article Abstract:
Equities are less risky over long-term periods, but investors have still suffered losses even when they have invested for ten years, as an analysis of historical data shows. The risk of a real loss for a ten-year investment is one in 15, or less than 7%. There are also transaction costs which tend to be higher for equities than for government securities and cash, and which depress returns. Equities appear to have become safer due to greater economic stability
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Time for investors to get on their cycle
Article Abstract:
World economic growth has been stable in the 1990s, partly because major world economies are at different parts of their business cycles. This may not last indefinitely, and volatility will increase because governments have abandoned fiscal policy and even exchange rate policy in some cases in Europe, which were previously used as stabilization tools. This will affect share prices and investments as a whole, and diversification will become more important.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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- Abstracts: A great deal to celebrate. Fingers in new pies. Mixing and matching
- Abstracts: Shareholders pummelled as director profit. Big losses forecast at troubled giftware group. Crown has high hopes for Winnie and friends
- Abstracts: Earnings disclosures and stockholder lawsuits. What motivates manager's choice of discretionary accruals? Are disclosures about bank derivatives and employee stock options 'value-relevant?' (response to articles by Venkatachalam, p.327 and Aboody, p.357, in this issue)
- Abstracts: Investors call the shots. Performance is not the whole story. Spoilt for choice
- Abstracts: Life insurance and charitable giving - important tax rules. Tax traps to avoid in the ownership and transfer of life insurance policies