When you start looking at the psychology of investing, you discover some interesting trends in the ways that people think. There are many views about when to deposit and when to withdraw from your investment, after doing some research, I found the following discoveries quite interesting.
The growing popularity of passively traded funds is no mystery if one considers that 80% of active asset managers have not outperformed their benchmarks over the last 5 years. A benchmark is an appropriate market index that a fund manager compares their performance to. For example, the JSE Top 40 is the commonly chosen index for South African Equity funds to benchmark their performance against.
I cannot think of an issue that divides traders and investors more than the concept and practice of short selling.
To build on the concept of leverage in securities it is of vital importance to understand how short selling affects an investment’s leverage or exposure.