Is this popular measure of stock market value giving a misleading “sell” signal? February 25, 2019 | City Talk One of the most widely watched measures of stock market value, the cyclically-adjusted price to earnings ratio (CAPE), has been giving off a screaming “sell” signal for the US market in the past few years. Last year it rose to a level not seen in its almost 140 year history, other than during the peak [...]
Are Centrica shares a buy at 20-year low? February 24, 2019 | City Talk At prices not seen since 1999, a 10 per cent dividend yield appears tempting, but it's not that straightforward. Two years ago, Centrica (LSE:CNA) shares were worth over 230p. Today they dived 12 per cent to just 120p. Last time they were that low you could have bought a loaf of bread for 51p* and Shanks & [...]
Most Brits struggle with ethical finances, research shows February 23, 2019 The majority of people try to live ethically but fall short when it comes to their finances, new research shows. A total of 71 per cent of Brits said they generally live their life ethically however, a fifth of people said they make socially responsible choices for their finances, according to a survey by digital [...]
A lesson for investors from the true life of Carlos Ghosn February 22, 2019 | City Talk Investors’ fondness for a good story is a theme we have often touched upon, here on The Value Perspective – though never in so literal a way as fortnightly Japanese manga magazine Big Comic Superior once managed. Back in 2001, it ran a comic strip chronicling the life of Carlos Ghosn, who rescued Nissan from [...]
Rathbone Brothers boosts profits but warns of Brexit impact on funds February 21, 2019 Wealth manager Rathbone Brothers said today it had boosted its-full year profit but warned Brexit could affect the value of its funds. Underlying operating income in investment management grew to £275.3m for the year to 31 December, up from £254.6m the previous year. That figure includes £8.7m in relation to Scottish wealth manager Speirs and [...]
Schroders and Lloyds Banking Group to launch financial planning joint venture in June February 20, 2019 A multi-million pound joint venture between investment management firm Schroders and Lloyds Banking Group will launch in June this year, the companies confirmed today. Schroders Personal Wealth will initially be available to Lloyds private banking and Bank of Scotland private banking customers before opening to the wider market in the fourth quarter of 2019, subject [...]
Why investors should beware increasingly unforgiving debt markets February 20, 2019 | City Talk Last year may have been a tricky one for US markets and investors but it was less so for the country’s businesses – at least, that is, to judge by the headline numbers on US companies filing for bankruptcy. According to figures from BankruptcyData.com, 58 companies totalling $52bn (£40bn) of assets declared themselves bankrupt in [...]
Passive management and relative returns? Fund managers urged to scrap investment jargon February 20, 2019 Fund managers have been urged to scrap jargon including absolute return, passive management, relative return and currency exposure by the industry body in order to help investors understand different products A total of three quarters of savers struggle with technical phrases, according to research by the Investment Association which today has called for firms to simplify [...]
Chilango’s minibond offers 8 per cent interest – that’s tasty, but is the burrito bond right for you? February 19, 2019 Last October, the burrito chain Chilango made headlines when it launched a new bond aimed at retail investors that pays an eye-popping eight per cent interest per year for four years. Compared to most high street banks, which currently offer just one or two per cent on cash savings accounts (well below the rate of [...]
Should investors be more concerned about China’s slowdown? February 18, 2019 The rise of China has been astonishing and its growing influence on the world is one of the economic forces discussed in our inescapable investment truths for the decade ahead. But economies don’t grow in a straight line. China is facing a transition period. It is a country we monitor closely and we believe its [...]