The impact of ‘quantitative tightening’ explained in 60 seconds October 19, 2017 Janet Yellen, chair of the Federal Reserve (Fed), has announced the Fed is going to introduce a new policy called quantitative tightening (QT). This is very different from quantitative easing (QE). QE was when the Fed created brand new money (around $3.5 trillion) to go and buy financial assets, principally government bonds, to suppress interest [...]
Index of ambition: How AIM fuels Britain’s startups October 19, 2017 Envied around the world, London’s Alternative Investment Market (AIM) has been much imitated but never bettered. I see AIM as the Index of Ambition. During my recent visit to East Asia, investors and politicians from Seoul to Tokyo kept mentioning their admiration for British scaleup companies. Read more: Celebrating the silver anniversary of the FTSE [...]
iPhones, oil and active investing: seven best investment charts of the month October 6, 2017 Taiwan tech tied to iPhone launch If history has taught investors anything, it is that the hype surrounding the latest iPhone launch by Apple usually ends up falling short of expectations. And this extends to the share prices of the many components suppliers involved in the giant’s supply chain too. In Asia, many Taiwanese technology [...]
Why the Federal Reserve’s ‘quantitative tightening’ will be held back October 3, 2017 Janet Yellen, the chair of the Federal Reserve (Fed), says she hopes that the reversal of QE will be as dull as “watching paint dry”. John Williams, San Francisco Fed President, said he hoped it is “boring”. Will they get their wish? Between 2009 and 2014 the QE programme saw the Fed create $3.5 trillion, [...]
Do rising interest rates reduce returns on income investments? September 18, 2017 Many will remember to their cost the infamous “taper tantrum” in June 2013. It was the moment Ben Bernanke, the then Chairman of the US Federal Reserve, indicated that the quantitative easing (QE) would be scaled back, or tapered. The QE programme had fed money into the financial system to stimulate the economy following the [...]
Fitness advice: Why building a “cheat day” into your regime could be bad news for your waistline September 12, 2017 If you’re one of the millions of people trying unsuccessfully to lose fat, your problem could boil down to two little words: cheat day. A “cheat day”, or “cheat meal” as it’s sometimes called, is where people on a training program allow themselves a period where they can eat whatever they want. Being healthy [...]
Twenty-one investment lessons from history September 6, 2017 Some investors give short shrift to analysis. They position portfolios to appease outside consultants, fickle clients, or their own institutional sales force. In many cases, they just buy what feels right. Other investors drown themselves in corporate road shows, insane travel schedules, monstrous spreadsheets. and detailed company reports, completely oblivious to the lessons of [...]
What to do in Amsterdam when it’s very, very wet outside August 4, 2017 Two things you should always pack for a quick city break: good shoes and a waterproof. Most cities are best viewed on foot. What interesting little side streets can a double decker bus tour ever take you down? There’s nothing better than being able to duck unplanned into a cheese shop, or a bar (or [...]
Machine learning, artificial intelligence and robo-advisers: The future of finance? August 4, 2017 The topic of machine learning-enabled artificial intelligence (AI) is gaining increasing visibility in the world of investment management. Of particular interest is the application of AI to the development of smarter robo-advisers that some hope, while others fear, will yield 'intelligent' and cost-effective investment management advice. This topic was raised by investment professionals during the [...]
These six charts caught our attention in July August 2, 2017 Safe as houses In the UK, house price growth began to slow noticeably last year when stamp duty on buy-to-let and second homes increased. The slowdown continued after the announcement that the UK would be leaving the EU. Perhaps surprisingly, London has been hit harder than the rest of the UK. UK growth is sluggish [...]