Tag Archives: investment

Crisis 10 years on – what’s changed

This month marks the 10th anniversary of the opening rounds of the great financial crisis. Though years in the making, it was finally in June 2007, that two Bear Stearns hedge funds created to invest in sub-prime mortgages, collapsed. This triggered an attempt by many banks, such as RBS, to shore up their own capital […]

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Investors must recognise disruption risks

Not all recent UK company results have made pleasant reading for shareholders. Some highly regarded retailers – such as Next and Kingfisher – have disappointed, and not just because of the recognised headwinds of Brexit and currency. Something bigger seems to be happening. Across the whole of Europe, the retail sector has lagged the main […]

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Change in the World Order

Trump is an immediate negative for markets around the world, as seen already in Asia. Immediate winners are gold, Treasuries and the Yen; but losers include the US Dollar, Mexican Peso, oil, climate change and equities. Since 1948, the Dow has typically fallen under a Republican. But if Trump’s presidency echoes Reagan’s leadership, markets may […]

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New bubbles from misguided monetary policy

Have any lessons been learned following the Great Financial Crisis? Around the world, it looks like new bubbles are growing. Certainly, the crisis showed that central banks and politicians can move decisively on the threat of economic collapse. But the sequel has been years of bad policy; propping up banks, bad loans and unsustainable growth. […]

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What will Brexit do to the UK economy?

The challenge for the UK is to move to being a good neighbour with the EU rather than a reluctant tenant. But how bad is Brexit for the British economy and stock market? Already it looks like the Pound has made a lot of the adjustment – a fall that may have been necessary anyway […]

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History can guide Investors on EU Referendum

Seasoned investors know that stockmarket sell-offs eventually offer buying opportunities. Indiscriminate falls in share prices mean bargains are available. But, putting this into practice takes real courage. It is rarely possible to get in at the bottom, so some immediate losses are likely. How can investors make stockmarket volatility pay off? It can be useful […]

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Value investing should be about business resilience

Investing style is how investors typically make sense of their portfolios. Emphasis can be on big or small companies, and labelled as “growth” or “value”. Each person’s style preference will fit their longer term goals, or even just match their own personality or attitude to risk. Investors can gain from clear thinking about style. Unfortunately, […]

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EU Referendum: Investors should be wary of the polls

How should investors prepare for Britain’s referendum on EU membership? Shares were weak ahead of the Scottish referendum and the UK general election, but ultimately it proved right to ignore the opinion polls. Polls can capture a lot of biases and wishful thinking, whereas voting often concentrates the mind. In the polling booth, fear of […]

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Mixed signals for 2016; deflation still the global risk

Investors enter 2016 divided on outlook: economic signals are mixed. The global economy is out of sync; with growth in the UK and US, but a slowdown in the developing world. How should investors position for the year ahead? Investors who were under-weight in oil, mining and industrials in 2015 might be forgiven for feeling […]

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3 key psychological challenges for investors

What are the main challenges to achieving good long term returns? Investors focus mainly on what the stockmarket might do; less so on their own behaviour. Some of the human behaviour that confers advantage in everyday life can drive poor investment decisions. The big challenges include; how we search for patterns and trends, the desire […]

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