Why M&S’ relegation from the FTSE 100 doesn’t mean the death of the High Street September 20, 2019 | City Talk Marks and Spencer (M&S) is set to be relegated from the FTSE 100 after the close of business today. This will be the first time that the company has lost its blue chip status. The UK retailer was a founder member of the FTSE 100 and a stalwart of the UK High Street. But its [...]
Can we avoid an energy crunch? September 18, 2019 | City Talk The energy transition has to happen. Climate change can no longer be ignored and the political will is finally there to confront the substantial challenges. The first stage of this process is the switch from energy produced by coal and gas to energy produced by renewables, such as wind, solar and geothermal. As part of [...]
‘Gen Xers care more about sustainability than millennials’ September 17, 2019 | City Talk People from Generation X – defined as those between 38 and 50 years of age – appear more motivated to invest sustainably than millennials. New research found 61 per cent of “Generation Xers” always consider sustainability factors when selecting an investment product, compared with 59 per cent of millennials, who are 18 to 37 years [...]
How will global disruption affect small cap stocks? September 9, 2019 | City Talk Small capitalisation stocks, or small caps, can offer the potential for higher returns compared with investing in larger companies, although they are not without risks. As with all equities, investors may not get back the amount they originally invested. As well as the potential for higher returns, investors are also being drawn to the sector [...]
Ten things every investor needs to know about offshore wind power September 5, 2019 | City Talk The solar and onshore wind industries have long been areas of focus for climate change investors, but offshore wind has always lagged behind because of its higher cost. However, that is set to change, with substantial growth likely in the sector over the coming years, as offshore wind approaches cost competitiveness with conventional electricity generation. [...]
Five sustainable investing myths September 2, 2019 | City Talk Given the dramatic rise in popularity of sustainable investing, it’s perhaps no surprise that a few misconceptions have come along for the ride. Sustainable investing – sometimes known as “ESG” investing because it considers environmental, social and governance risks and opportunities – has become increasingly important. Last year our employer Schroders found two-thirds of investors [...]
Investing ‘IQ test’ reveals the traits that could limit returns August 29, 2019 | City Talk Investors globally suffer from an ambiguity bias which can prevent them from taking risks with their investments and potentially lower their returns, Schroders investIQ test found. All investors have behavioural biases such as ambiguity aversion or impulsivity which can affect the way they invest. By understanding these biases, investors may be able to improve their [...]
The chart that reveals the secret of value investing August 27, 2019 | City Talk Value investing is the art of buying stocks which are valued at less than their true worth and are awaiting a correction. History suggests that over the longer term value investing works, although past performance is no guarantee of future returns. But why does it work? Using data going back to the late 1800s, the [...]
Behavioural finance: what the polka dot maxi dress sensation has to do with investing August 23, 2019 | City Talk THE polka dot Zara dress sensation comes to mind when considering recent examples of “herd bias”. The hugely popular dress, which has its own Instagram page dedicated to sightings of it, was initially a sell-out, and it seems herd mentality has been at play. However, this bandwagon effect, where people gravitate towards something because “everybody [...]
Economy on red alert with yield curve close to inversion August 16, 2019 | City Talk Both the US and UK yield curves are on the verge of inverting. The yield curve has been a reliable predictor of US recessions over the last four decades, less so in the UK. With only one exception, each time the yield curve has inverted, the US economy has entered a downturn within 18 months. [...]