Three behavioural biases to watch out for during a crisis June 25, 2020 | City Talk Nick Kirrage walks us through the most common behavioural biases investors suffer from and how to overcome them. At the best of times, investors are at risk of succumbing to certain behavioural biases that can cloud judgment and impair decision-making. In highly stressful and unpredictable times like the Covid-19 crisis, there is a greater propensity [...]
Big tech vs the market: what you need to know June 23, 2020 | City Talk Big tech has led the global market recovery in the wake of Covid-19. Can the dominance of the FAMAGs continue? On 8 June the S&P 500 of US stocks recovered all their Covid-19 losses for 2020. The so-called FAMAGs (Facebook, Amazon, Microsoft, Apple and Alphabet (Google’s parent company)) led that recovery. Even before the pandemic, [...]
Out of crisis comes opportunity… for fraudsters June 18, 2020 | City Talk ‘Out of crisis comes opportunity’ is usually said with positivity in mind. In the current context, for example, entrepreneurs discovering ways to successfully diversify their business. What is less frequently spoken of, though, is how bad practice and criminality can emerge, grow or even thrive during a crisis. Criminals see opportunities in crises, too. So, [...]
A new ‘superfund’ scheme for pensions June 18, 2020 Pensions minister Guy Opperman announces a significant step towards transforming retirement saving The consolidation of defined benefit pension schemes into “superfunds” has the potential to deliver more secure retirement incomes for workers, while allowing employers to concentrate on what they do best: running their businesses. That’s why I welcome the Pensions Regulator’s interim regime for [...]
Exclusive: Investors dash for cash savings despite historically low interest rates June 16, 2020 Investors are retreating to cash savings as they adapt strategies during the pandemic, despite central banks slashing interest rates. An independent survey of more than 900 investors, commissioned by broker HYCM, shows the most common asset class is cash savings – 73 per cent – followed by private pensions. A third of all investors surveyed [...]
Watch out for too much money — and the return of boom and bust cycles June 15, 2020 Money is growing at record rates in peace time the US, at least by modern standards. The quantity of money in the US (as measured by M3) rose by 7.5 per cent in April 2020. With further strong money growth in May, the annual rate of growth of money has shot up to a shocking [...]
Taxation post COVID19 June 15, 2020 | City Talk Following global lockdown the UK went into defensive and offensive mode with the furlough scheme, loans and other government support for almost every business and sole trader. But that has seen a reasonably strong economic outlook disappear almost entirely for some businesses in the short space of 3 months. In turn this has resulted in [...]
A green light for sustainable investments June 15, 2020 The aftershock of the Covid-19 pandemic will be felt by the economy and our financial markets for years to come, despite the encouraging signs of businesses beginning to open up. Friday’s figures revealed that the economy contracted by 20.4 per cent in April, while the Office for Budget Responsibility recently warned that the crisis could [...]
Stressed about your finances in the coronavirus pandemic? You’re not alone June 13, 2020 The coronavirus pandemic has brought about significant financial unease among UK workers, a survey has found. Two-in-five people who work for larger companies reported an increase in financial anxiety in the wake of the pandemic, according to Close Brothers research. Only 54 per cent of workers felt they were financially prepared for the crisis. Meanwhile, [...]
Brits turn their back on cash during lockdown as contactless payments jump to £957m June 10, 2020 The average Brit has gone 44 days since using cash as new research reveals lockdown has accelerated the pivot to contactless payments. Customer data from Nationwide shows that tap-and-pay transactions have increased 44 per cent since the week of 23 March, when Britain was placed on lockdown. Nationwide members made 78.5m contactless between 23 March [...]