magazine archive
magazine archive
Feature
Shuffling the pack: How income funds are turning to different stocks for dividends
Thursday 15 Oct 2020It’s been a tough year for people who rely on their investments for income thanks to widespread dividend cuts. Income fund managers have now rejigged their portfolios to names which they believe will be dependable source of dividends or bond coupons going forward. Their changes make for interesting...
Why investors need to do their homework on rivals and suppliers
Thursday 15 Oct 2020Whenever a fund manager considers making a new investment, as well as thoroughly analysing the target company’s returns, its finances, the valuation of its shares and so on, they typically take a good look at its rivals to understand the dynamics of the market. In a global sector like oil,...
Low growth, recovery or second wave: the investments to own in each scenario
Thursday 08 Oct 2020We see three different scenarios for markets going into 2021 and inflation will play a key role. First is strong economic recovery with rising inflation and this scenario favours cyclical stocks. For example, this might be commodity producers who would sell their metals for higher prices. Banks...
Why do shares sometimes react so differently to positive news updates?
Thursday 08 Oct 2020It’s fair to say that more often than not as human beings we overreact to information, which in turn can lead share prices to overreact in the short term. Yet, as our recent article on momentum showed, if a stock is in a clear trend – positive or negative – it can experience a lot of short-term...
The FTSE 100 firms which have delivered a decade of negative returns
Thursday 01 Oct 2020Thirteen companies in the FTSE 100 have lost money for investors who have held the shares over the past decade, based on share price performance and dividends reinvested for the 10 years to 24 September 2020. In comparison over the same timeframe, the 10-year total return for the index stands at 52...
Momentum investing: when to buy a winning stock
Thursday 01 Oct 2020One of the oldest sayings in the stock market is ‘the trend is your friend’, which means if a share price has been rising for some time, all else being equal, it’s likely to continue rising for the foreseeable future. Likewise, if it’s been falling for some time, it will likely keep falling until...
Tech and gold: is Warren Buffett stepping back at Berkshire Hathaway?
Thursday 01 Oct 2020Cloud-based data warehousing technology firm Snowflake listed in the US on 16 September in the biggest ever software initial public offering ( IPO ), with its shares up 111% on the first day of trading, valuing the company at £96 billion. Given investor appetite for cloud-based businesses, perhaps...
Growth investing: how to find good companies and avoid bad ones
Thursday 24 Sep 2020The appeal of a growth company is easy to understand – when we put our money into a business which we expect to grow rapidly we can imagine the worth of our investment growing fast too. Many of today’s largest companies were once small or medium-sized operations which have expanded their business...
The impact of negative interest rates on savers and investors
Thursday 24 Sep 2020The central banks of Japan, the EU and several other countries have implemented negative interest rate policies for some years and the Bank of England (BoE) says it will explore how this could work in the UK, should it ever be needed. With the current base rate at 300-year lows of 0.1%, we now...
Emerging markets: Views from the experts
Thursday 24 Sep 20201 . A trend witnessed in several countries globally, the daily number of Covid-19 cases in India started to increase in late-August as the country continued to ease quarantine restrictions and economic activity began to gradually normalise. A silver lining is that these countries – including India...