This ‘bond with a twist’ is sending a worrying message on risk December 27, 2018 | City Talk In the world of finance, not all investors are created equal. In fact, this is a truth largely held to be self-evident and the reason for investors’ composure on the issue largely boils down to a matter of risk versus reward. Broadly speaking, equity investors expect to see greater returns in the longer run than [...]
Why 2019 might be a better year for investors December 19, 2018 | City Talk 2018 has been a disappointing year for most investors. Almost all markets, both stocks and bonds, have fallen in value this year, under pressure from rising interest rates, political developments such as Brexit, and the trade dispute between the US and China. With hindsight, markets were priced for perfection at the start of the year [...]
Three reasons to diversify in the hunt for equity income December 13, 2018 | City Talk Obtaining additional income is the primary goal for many investors, yet achieving it can be hard. Here we look at three ways diversification can potentially bring wider opportunities for income-seekers who invest in shares: Relying on just a few stocks for income can be risky – they may cut their dividends or the share price [...]
China reduces tariffs on US cars to 15 per cent amid signs trade war is softening December 11, 2018 China has agreed to reduce tariffs on US cars from 40 per cent to 15 per cent. Shares in US car firms jumped slightly on immediate reaction to the news. Shares in General Motors were up 2.8 per cent, while Tesla was up 0.7 per cent and Ford 0.65 per cent. Meanwhile, US markets were up slightly [...]
Volatile day for stocks after Huawei executive’s arrest sparks trade fears December 6, 2018 US stocks closed down today despite fierce fightback in the final hours of trading as the arrest of a top Chinese executive sparked a volatile day of trading. The Dow Jones fell more than 500 points at one point after the arrest of Meng Wanzhou, chief financial officer of telecoms giant Huawei, reignited fears about [...]
UK Investors forecast returns of 8.1 per cent – with UK millennials expecting more December 6, 2018 | City Talk UK investors expect annual returns of 8.1 per cent over the next five years, according to a major new global study. The finding, part of the Schroders Global Investor Study 2018, marked a notable fall from an expectation of 8.7 per cent in the UK in last year’s study. The returns, based on the average expectation of [...]
Dow Jones takes a tumble amid trade truce doubts and recession fears December 4, 2018 US stocks fell sharply today amid uncertainty over the country’s trade war truce with China. The Dow Jones tumbled more than 800 points as initial enthusiasm about the trade ceasefire between President Trump and President Xi began to wane. On Monday the Dow saw large gains after Trump agreed to delay a rise in tariffs [...]
The “79 per cent chance” the Santa Rally is real December 3, 2018 | City Talk Stock markets have risen in 79 per cent of Decembers over the last three decades adding some substance to the myth of the “Santa Rally”, Schroders research has found. The “Santa Rally” is a supposed effect of the Christmas feel-good factor, helping stock markets rise at the end of the year, although many seasoned investors remain [...]
What happens when the ‘FAANG’ stocks lose their bite? November 29, 2018 | City Talk There can be little doubt about the stars of world markets in recent years. The US has led the way, with tech companies to the fore and, at the very front of the march, the so-called ‘FAANG’ stocks of Facebook, Amazon, Apple, Netflix and Google. Still, remembering the old stock market adage ‘Tall trees do [...]
Expensive stocks & high debt: A concern for investors November 28, 2018 At no point in the lifetime of any investor operating today has the US not been the largest stock market on the planet and yet it recently notched up a new kind of record. According to numbers crunched by analyst Scott Irving of Jefferies International, at the end of September, the US accounted for 62.4 [...]