Political shocks have been a buy signal in 2016 – why not in 2017 too? December 12, 2016 It's that time of the year for financial journalists: we are being inundated with lengthy outlook reports for the coming year. My inbox is littered with ominous warnings about how 2017 will see more uncertainty, and the overwhelming theme for the year is: it’s the politics, stupid. Given the rise in populist voting in 2016, which manifested [...]
Discover in one click: the UK’s second biggest foreign direct investment area next to London December 12, 2016 | City Talk As the UK's second largest financial sector, Scotland is helping to lead the charge for Foreign Direct Investment (FDI). Sharon Hamilton, SDI’s head of financial and business services, explains why. We’ve heard the term ‘open for business’ a great deal recently. It’s a reassuring phrase traditionally used by your local corner shop, hairdresser or café, and has [...]
A median of £0? Well, that’s what the ONS says one sector’s workers are putting into their pension pots December 9, 2016 Work in the tourism sector? Are you putting money away for retirement? If the answer is no, then you aren't alone. The latest numbers from those clever boffins over at the Office for National Statistics (ONS) suggest the median pension savings reported in the tourism sector is a mighty… well, diddly-squat. That's right, the ONS said the median reported [...]
Why this is a disqualifying offence for a value investor December 9, 2016 Some people apparently just will not be told. While past performance is no guide to the future, despite all the evidence a value-based approach outperforms over time, investors’ money is increasingly clustering in more non-value-oriented offerings – sometimes known as ‘growth’ but probably more accurately called ‘momentum’ funds. The current situation is starkly illustrated by the following [...]
TGI Friday: Private equity company reports record returns December 9, 2016 The last day of the working week is, no doubt, always a cause of celebration for the owner of TGI Fridays. But this Friday is an extra special one for Electra Private Equity, which also holds investments in the Original Bowling Company, Photobox Group and holiday parks operator Parkdean Resorts. Epiris, the manager of Electra, [...]
A short history of investing in gold – and what to expect for 2017 December 8, 2016 | City Talk Gold is coveted by investors for its rarity. As a precious metal with limited supply, it is seen as a store of value when the real value of other assets, and currencies, can be manipulated. But fundamentally, its high worth is underpinned by its usefulness and attractiveness. Not only is it highly malleable but it [...]
Bank shares and stress tests: the value investor’s verdict December 8, 2016 The Bank of England’s latest stress tests of the UK banking system attracted many column inches of space in the newspapers last week. The aim was to calculate whether these institutions would have enough capital to withstand certain grim scenarios. Moving away from some of the inflammatory headlines, it is worth looking in more [...]
Bank shares and stress tests: the value investor’s verdict December 8, 2016 The Bank of England’s latest stress tests of the UK banking system attracted many column inches of space in the newspapers last week. The aim was to calculate whether these institutions would have enough capital to withstand certain grim scenarios. Moving away from some of the inflammatory headlines, it is worth looking in more detail [...]
Local alternative lending is enabling business growth outside the city December 8, 2016 Over the past decade, the risk appetite of the big banks has fallen, making them less inclined to provide finance to SMEs up and down the country. Consequently, small businesses have found it more challenging to secure funding through traditional methods. Figures recently published by the BBA, for example, showed that high street banks such [...]
Four investment myths on the rise December 7, 2016 | City Talk The world of investing constantly changes and that means yesterday’s wisdom can soon become today’s myths. Or in some cases, the story moves along and some investors haven’t quite kept up. Your own biases and assumption can pose a danger to wealth generation (you can test this at Schroders Income IQ). So here we run [...]