How does geopolitics impact investment returns and what can you do about it? September 10, 2019 | City Talk Geopolitics can significantly impact investment returns; whether it’s trade wars, actual wars, populist politicians or terrorist attacks. And as we discussed earlier this year in our “Inescapable investment truths for the decade ahead”, geopolitical risks are on the rise and will play a major role in the years to come. So, what does this mean [...]
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 [...]
Number of taxpayers falling six months behind on bills increases September 9, 2019 The number of British taxpayers who are falling well behind on their tax bills has continued to climb, according to research. About 117,000 people are now more than six months behind, according to accountancy Moore Stephens, meaning they have received the second of two penalties of five per cent of the tax they owe. This [...]
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. [...]
Forget what you’ve heard, Facebook’s libra can help in the fight against money laundering September 3, 2019 The cost of anti-money laundering (AML) protocols and procedures for businesses is well-documented. Financial institutions sink billions each year into technology to identify suspicious activity and prevent their services being used for illegal transactions. Despite these efforts, money laundering remains big business, representing around five per cent of global GDP. That’s larger than the entire [...]
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 [...]
Lender Amigo’s share price crashes as loan growth dwindles August 29, 2019 High interest rate lender Amigo has had one-third of its market value slashed this morning after warning of a change of strategy which will see impairment rates jump and lending growth slow as it braces for a crackdown by regulators. At one point this morning shares were trading 33 per cent down at 97p, as [...]
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 [...]