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 [...]
Myths and legends: the bespoke portfolio June 19, 2017 | City Talk Britain’s wealth management industry is in need of big overhaul. The bespoke portfolio – which is more likely to underperform than a centrally managed portfolio and cost clients more – illustrates why this industry is ripe for change. Imagine you take your pension and ISAs to a typical wealth manager. Arrive with £50,000 or £100,000 [...]
What a minority government means for the UK economy June 19, 2017 | City Talk After the shock of the general election, resulting in a hung Parliament and minority Conservative Government, what are the implications for the economy and investors? In terms of the political outlook, three scenarios strike me as likely. First, and most likely, the Conservatives remain in power, with the support of the Democratic Unionist Party (DUP) [...]
Why the robot apocalypse won’t come tomorrow June 16, 2017 Read any media article on artificial intelligence or ‘AI’ these days and you are likely to come away with the impression it won’t be so very long before your life is being run by the Matrix and your boss is a marginally more benign version of the Terminator. Apparently, however, there are still a couple [...]
Does low volatility mean a shock lies in store for investors? June 14, 2017 | City Talk Despite the many economic and geopolitical risks in the world today, volatility in asset markets has been remarkably subdued. The Vix index, the market’s so-called fear gauge, has recently fallen to a reading of around 10. This is exceptionally low compared to long-term norms. and only just above the all-time low of 9 that it [...]
Is it worth investing in European stock markets? June 9, 2017 | City Talk Eurozone equities have made strong gains in 2017. The eurozone stock market, as measured by the MSCI EMU index, has returned 11.9% in the year to 31 May. Reduced political risk A large part of the reason for Europe’s recent gains is that investors are less worried about political risk. At the start of the [...]
UK general election: what a hung parliament means for markets June 9, 2017 | City Talk The UK general election has resulted in a hung parliament, with no party commanding an overall majority. The Conservatives have emerged as the largest party and will likely seek to form a minority government. The result is unexpected. Polls during the election campaign had generally pointed towards a comfortable Conservative majority. Our panel of investment [...]
Can investors spot the Amazon stocks of the future? June 8, 2017 | City Talk May was a big month for Amazon. Not only did it celebrate the 20th anniversary of its stockmarket floatation, its share price edged past the $1,000 (£776) mark for the first time. It's not bad going for an internet book-seller that began trading at just under $2 a share. This 49,000%-plus return means anyone who [...]
The league table of safest cars holds a lesson for investors June 6, 2017 | City Talk Here’s a quick multiple-choice question: What single quality do you look for most in a new car? A) Top-of-the-range sound-system. B) The ability to accelerate from 0 to 60mph is under five seconds. C) Cup-holders for all passengers. D) The reassurance that you and your passengers have a better than average chance of reaching your [...]
Electric cars and oil prices: should investors be concerned? June 5, 2017 | City Talk What is more likely to cause a long-term collapse in oil prices – the electric car or the humble combustion engine? If you were to judge solely by media coverage or perhaps even by gut instinct, you might well answer "the electric car". But you would be wrong. So at least argues a single, thought-provoking [...]