Tag • #investing

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Tory MP faces lobbying questions over Treasury committee role

news.movim.eu / TheGuardian · Friday, 29 March - 06:00

Co-owner of investment management firm called for ‘urgent’ post-Brexit changes to City rules at committee meetings

A senior Tory MP is facing questions over whether he used his Commons Treasury committee role to lobby for post-Brexit changes to City rules, which stand to benefit the industry where he has a second job.

John Baron, who in addition to his role as an MP is co-owner and chief investment officer of Baron and Grant Investment Management, used at least three meetings of the influential committee to request “urgent” changes to rules covering investment trusts, which his firm specialises in managing.

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How can Donald Trump’s lossmaking Truth Social be worth $8bn?

news.movim.eu / TheGuardian · Wednesday, 27 March - 14:46

The rightwing social network’s flotation, supported by fans of the ex-president, make it a part of the ‘meme stock’ phenomenon

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Donald Trump’s social network went public on Tuesday and almost immediately hit a valuation of almost $8bn (£6.3bn). The valuation fell back to a more modest $6.58bn by the time markets closed in New York, but that still represented a gain of more than 15% on its initial public offering (IPO) value. That enormous success has raised questions, and not all of them are easy to answer.

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Investor overconfidence linked to selective memory

John Timmer · news.movim.eu / ArsTechnica · Sunday, 5 September, 2021 - 14:30 · 1 minute

Image of a person in front of a graph tracking investment performance.

Enlarge (credit: https://www.gettyimages.com/detail/news-photo/trader-works-in-front-of-a-board-displaying-germanys-share-news-photo/1234893457?adppopup=true )

There's extensive academic literature on the risks faced by investors who are overly confident of their ability to beat the market. They tend to trade more often, even if they're losing money doing so. They take on too much debt and don't diversify their holdings. When the market makes a sudden lurch, they tend to overreact to it. Yet, despite all that evidence, there's no hard data on what makes investors overconfident in the first place.

With the cost of going wrong, you'd think that people who risk money in stocks would learn from their past mistakes. But a new study suggests that our memory's tendency to take an optimistic past gets in the way, with people inflating their gains and forgetting their losses.

Selective memory

The lack of real-world data is a bit surprising, considering there are a number of reasons to suspect a happy nostalgia might be involved here. There's previous research that shows college students remember their grades as being better than they actually were. Other research shows that people quickly forget their actual cholesterol levels and remember tests as indicating a healthier one.

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