How the FTSE 100 returned 94 per cent without moving January 14, 2019 | City Talk On New Year’s Eve 1999, the FTSE 100 closed at a then-record high of 6930. Few could have envisaged then that, 19 years on, the index would be lower. It stood at 6845 as at 14 December 2018. A negative return for investors over that long a period can be concerning, but it doesn’t tell [...]
Financial markets 2018: the year in review January 7, 2019 | City Talk After two years of steady growth in asset prices, 2018 proved more of a challenge for investors, particularly in the last three months of the year. US president Donald Trump’s tax cuts had provided an added boost for investors heading into 2018, and US GDP growth accelerated to 4.2 per cent on an annualised quarterly basis [...]
Amazon HQ2 – “Mr. Bezos, why didn’t you call?” January 2, 2019 | City Talk Amazon’s HQ2 search went live on 7th September 2017 and it selected the winning cities, New York and Washington, in November 2018. The Global Cities databases that we use to quantify our investments comprise exactly the data that Amazon needed to make its decision. It wasn’t just Mr Bezos’ time that was wasted. When Amazon [...]
Which stock markets look ‘cheap’ as we head into 2019? December 31, 2018 | City Talk 2018 was a rumbustious year for stock markets, with things really coming to the fore in the latter stages. With investors having grown accustomed to an unusual oasis of calm over recent years, volatility was back with a bang. However, as the dust settles, there is a silver lining for stock market investors. Even before [...]
How a measure of bitcoin’s worth proved worthless December 28, 2018 | City Talk The financial pages are noticeably shorter on bitcoin stories than this time last year – which may or may not have something to do with the precipitous fall in the cryptocurrency’s price over the last 12 months. On 14 December 2017, a single bitcoin was trading at an all-time high of £14,749 whereas, as of [...]
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 [...]
Brexit the top concern for UK investors December 21, 2018 | City Talk Investor concerns about Brexit have soared in 2018 according to Schroders’ annual Adviser Survey, completed by more than 400 financial advisers from across the UK. A remarkable 90% of advisers said that the impact of Brexit was a concern for their clients for the next 12 months, up from 81% in 2017 and 71% in [...]
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 [...]
Why investors should be wary of star managers December 12, 2018 For a long time, it seemed like Neil Woodford could do no wrong. That was until 2017, when the UK’s best known fund manager seemed to lose his magic touch – and since then, the returns from his three popular funds have been struggling. His flagship Woodford Equity Income fund has lost investors almost 10 [...]