Market Noise

Noise is unwanted sound. For investors it is those pieces of data, stories, or even price moves, which may seem like information but actually tell us nothing about the future returns of an asset. Trading on noise can be hazardous to your wealth.

In Market Corner we hope to identify examples of noise which may be prevalent in an era of exponentially growing data and obsession with the short term. Why? To try not to fall victim to noise in our own decision making. Because human beings love stories noise can be highly seductive. We must always be on our guard and looking for examples of noise is just one step towards doing this.

China’s ‘Black Monday’?

You have just returned from a relaxing summer holiday sunbathing in Portugal, or sailing in the Med or maybe a more adventurous one discovering California’s natural beauty. However, markets don’t seem to agree with your current state of mind…and just a glance at WEI Bloomberg screen or recent NAV moves… Read the article

Twin Peaks

On Tuesday the FTSE 100 index reached price levels last seen at the top of the tech bubble.

This has grabbed some attention in an investment media always hungry for content, and it is the type of headline that appeals. It is factually correct (which always helps) but… Read the article