‘Investing is not the study of finance. It’s the study of how people behave with money’


A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web

Morgan Housel from U.S. venture capital firm Collaborative Fund published a tour de force over the weekend. It is easily the best thing I’ve read this year combining investing and personal finance, and I definitely recommend reading the whole thing.

Here are some samples,

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“Investing is not the study of finance. It’s the study of how people behave with money… It helps, I’ve found, when making money decisions to constantly remind yourself that the purpose of investing is to maximize returns, not minimize boredom. Boring is perfectly fine. Boring is good. If you want to frame this as a strategy, remind yourself: opportunity lives where others aren’t, and others tend to stay away from what’s boring. .. few things in money are as valuable as options. The ability to do what you want, when you want, with who you want, and why you want, has infinite ROI.”

“The Psychology of Money” – Housel, Collaborative Fund

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Morgan Stanley U.S. equity strategist Michael Wilson collected the best stock ideas covered by the firm, combining his strategic outlook and the work of Morgan Stanley analysts. Preferred sectors are energy, financials and industrials. The report does not include a full list of picks – possibly so people like me don’t tweet them all out for free for non-clients, but the stocks in preferred sectors and the reasons for optimism are in the links below,

“@SBarlow_ROB MS top picks in energy” – (research excerpt) Twitter

“@SBarlow_ROB MS top picks industrials” – (research excerpt) Twitter

“@SBarlow_ROB MS top picks financials” – (research excerpt) Twitter

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An important paper from OECD economist Hervé Boulhol estimates that the retirement age is going to have to be lifted a lot – about eight years – for most developed countries,

“In 1980, there were 20 people aged 65 or older for every 100 people of working age (that is, aged between 20 and 64). By 2015, this number had increased by 40%, to 28 people aged 65 or over for every 100 of working age. Project forward another 35 years, the ratio will be 53 to 100 in 2050 based on UN mortality projections (United Nations 2017) – a further increase of 90%… Stabilising the old-age dependency ratio would mean an average shift in the age boundary between 2015 and 2050 by a stunning 8.4 years”

“Population ageing: Pension policies alone will not prevent the decline in the relative size of the labour force” – Boulhol, VoxEU

“Unions fighting potential changes to municipal pension plan” – CBC

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Tweet of the Day:

Diversion: Psychology’s famed marshmallow test is debunked,

“Why Rich Kids Are So Good at the Marshmallow Test” – The Atlantic





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