FTSE 100 history: how the index has changed over 33 years July 3, 2017 | City Talk The FTSE 100 index has just seen one of its quarterly changes with security firm G4S and real estate investment trust Segro promoted to the top 100. Although perhaps small in themselves, these regular events have changed the face of the UK’s leading index since it was formed in 1984. For the many investors whose [...]
Are car loans a slow-motion car crash? June 29, 2017 | City Talk The car industry understandably attracts a lot of attention in the financial press. Although the sector is small compared to giant sectors like financials and technology, cars are culturally relevant in a way that banks are not. The auto industry is involved in areas of exciting technological change, such as electric cars and autonomous driving. [...]
The chart that could keep investors in ‘low-risk’ stocks awake at night June 27, 2017 | City Talk For years it has been an undisputed fact of investment that people tend to prefer having big-name brands in their kitchens, bathrooms and elsewhere – yet this could now be changing. Ian Kelly, blogger and fund manager, explains the significance. Among the various qualities we look for in an investment, on The Value Perspective blog, [...]
Don’t underestimate the risks of interest rate hikes to the global economy June 27, 2017 | City Talk In recent months sentiment towards financial markets has been broadly positive in Western economies. But, as the recent UK political situation has demonstrated, sentiment can quickly change. Such swings also happen in financial markets. Here I highlight some of the key current macro-economic issues to watch for. Global recovery gaining traction The world economy is [...]
Brexit one year on: the impact on the pound, FTSE and the economy June 23, 2017 | City Talk When the result of the UK’s EU referendum confirmed that the UK had voted to leave, markets were initially weaker. The FTSE 100 index has since rallied by 17%, while the pound has fallen by 14.5% against the dollar, to $1.27. But what has changed, and what are the prospects for UK investors? A panel [...]
Is South Korea still an investment ‘value trap’? June 23, 2017 | City Talk ‘Value trap’ is a term used by investors to describe an asset that appears to have been under-priced by the market but turns out to be cheap for a reason. This is often because its ability to make profits has in some way been severely and permanently impaired. It tends to be used in relation [...]
Bitcoin: mouth-watering investment prospect or eye-watering valuation? June 21, 2017 | City Talk For a system of currency to be worth anything, people need to believe in it – and at present there is no shortage of belief in so-called ‘cryptocurrencies’. Bitcoin may be the one most people will have heard of but there are now around 100 cryptocurrencies in existence and, earlier this month, their combined worth [...]
14 years of returns: history’s lesson for investors June 20, 2017 | City Talk The temptation among investors is to stick to what you know. That is no bad thing. It is a strategy championed by pioneers of investment such as Warren Buffett. It can work when the market is rising and you have picked the right asset. However, it is also important for investors to also consider the [...]
Managing market volatility June 19, 2017 | City Talk Volatility is an important measure in financial markets. At times of stress or uncertainty, volatility rises. In contrast, low volatility is usually associated with stable or predictable conditions. In recent months, volatility has been relatively low. A good indicator of this is the VIX index. Although this measures volatility implied by derivatives on US stock [...]
Being smart about fees could extend pension income by 10 years June 19, 2017 | City Talk Rising longevity and low interest rates are stirring up a perfect storm for investors – but a few smart decisions could help generate a sustainable income for an extra 10 years or more in later life. One smart move open to investors is to choose an investment vehicle whose costs will eat up less of [...]