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Theories, Crowds, Bubbles, & Bees: Daniel Needham on Contrarian Investing
Theories, Crowds, Bubbles, & Bees: Daniel Needham on Contrarian Investing
ratings:
Length:
42 minutes
Released:
Jan 6, 2020
Format:
Podcast episode
Description
Why might contrarian investing outperform, and how might an investor know when it's time to head in the opposite direction from the crowd?
Daniel Needham, president and global chief investment officer, explores why markets are frequently efficient and what makes them become inefficient; explains how contrarians can act like a thermostat for markets; and explains how bees can be better decision-makers than humans at times. He also shares a checklist his team uses to help them make rational decisions that go against the crowd. Drew Carter hosts.
Daniel Needham, president and global chief investment officer, explores why markets are frequently efficient and what makes them become inefficient; explains how contrarians can act like a thermostat for markets; and explains how bees can be better decision-makers than humans at times. He also shares a checklist his team uses to help them make rational decisions that go against the crowd. Drew Carter hosts.
Released:
Jan 6, 2020
Format:
Podcast episode
Titles in the series (100)
Contrarian Ideas: Have Lower Oil Prices Made Energy Stocks Attractive?: On September 14, 2019, Saudi Arabian oil fields were attacked, leading to a spike in oil prices. But the spike quickly subsided, with prices falling back—and even below—their pre-spike prices about two weeks later. But the phenomenon of lower oil prices is of course not new. And that’s reflected in the returns of U.S. stocks in the energy sector, which lost an average of about 5% a year over the five years ended September 30, according to S&P 500 sector index data on Morningstar Direct. The S&P 500, during that same period, rose nearly 11% annualized, while the IT sector climbed more than 18% on average each year. How does this weigh on our views of the energy sector going forward? We think energy is the most underpriced sector and, as valuation-driven investors, we therefore believe this sector may be poised for better growth than the broad market in the future. by Simple, but Not Easy