Noise and Hype leads to losses

Many people offering investment advice are very good at telling you when to ‘buy’ and not so proficient when to ‘sell’.

More importantly, how about telling you when to ‘hide’ and ‘stay away’??

‘Noise’ in the absence of research and analysis is costing investors a lot of money.

Remember the ‘buying’ hype around;

Buy Now, Pay Later companies,

Non-Fungible Tokens (NFT’s),

Neo-Banks,

Copper and electrification,

anything else involving renewable energy

and food shortages and freezing Europeans (due to the Ukraine invasion, “they” were buying Wheat, Fertilizer and Natural Gas)

16 years ago it was hype surrounding CDO/CLO (sub-prime) investment opportunities.

Today, it’s Private Credit…..

and it could be East Coast Australian real estate……

and possibly the Magnificent 7 stocks of the Nasdaq….??

Avoiding losses and carnage doesn’t show up in any of your investment performance but for others, creating the feeling that you need to participate in something new or re-invented does help the promoter or seller either make a market or a dollar.

January 30, 2024

by Rob Zdravevski

rob@karriasset.com.au