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Apr 22, 2024
Each month, thousands of Jamaicans contribute 5%, 10% and as much as 20% of their monthly salary to a pension fund or individual retirement account. In some cases, this is matched by your employer. The most important message for these contributors is that - your pension investments will NOT support you in retirement. These funds will NOT be sufficient to replace your income 20 years from now. Why?
- Inflation: While inflation has been in the single digit range since 2011, Jamaica’s 20–30-year average inflation rate is much higher. It is important to look at longer term horizons that mirror our working life, since this is the length of...
Last week we discussed the Ostrich and Meerkat Effects. The Ostrich Effect refers to the idea that some investors metaphorically bury their heads in the sand to ignore or avoid negative news while the Meerkat Effect describes investors who display the opposite behavior. When faced with a...
Apr 25, 2022
Close your eyes and imagine an ostrich. One of two images will most likely come to your mind- either an ostrich running (they are known for their speed after all) or an ostrich with its head buried in the sand. Interestingly when I was doing research for this article, I found out that the...
Apr 18, 2022
Red flags are traditionally used to signal danger. There are many red flags waving in front of us in our everyday life that we often ignore. This can be detrimental to our health and wealth such as when we feel unwell physically and ignore the signs of illness (red flags) to our peril...
Apr 11, 2022
Problem description: Higher interest rates have negative implications for many asset classes, not just fixed income assets. Higher interest rates translate to lower equity valuations (and thus less “price appreciation” potential). Higher interest rates also increase the cost of debt for...
Apr 04, 2022
With great risk comes great reward is a quote famously attributed to Thomas Jefferson. An investor's risk tolerance is a very personal thing and their appetite for risk will change over time. 2022 has certainly begun with a bang and investors may be wondering what risks are necessary to...
Mar 28, 2022
This week saw the US Federal reserve increasing interest rates for the first time since 2018. This has been done to try to curb soaring inflation in the US. But what does this mean and how does this affect investors here in Jamaica?
Simply put, inflation is the general level of increase...
Mar 21, 2022
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