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Latest Fundsmith letter offers investors comfort despite tough market conditions
Thursday 14 Jul 2022In a six-month period which included a significant downturn in global stock markets, and during which long-dated assets like high-quality growth companies have underperformed short-dated, lower-quality companies, it’s no surprise the Fundsmith Equity Fund (B41YBW7) trailed its benchmark. For the...
Investors in US banks could see higher dividends soon
Thursday 07 Jul 2022More generous dividends are expected to be a key theme in the forthcoming quarterly reporting season for US banks, which starts on 14 July. The sector underperformed during the pandemic due to fears of increasing loan losses. Banks took huge provisions in anticipation of a severe downturn. However...
Sainsbury’s celebrates blow-out Jubilee weekend but non-food sales slide
Thursday 07 Jul 2022S ainsbury’s ( SBRY ) supermarket boss Simon Roberts must have been thanking his lucky stars for the Platinum Jubilee bank holiday weekend, which saw Brits splashing out on scones and clotted cream, washed down with record sales of beer, wine and spirits at street parties up and down the country...
Chrysalis shares slump 63% in six months on investment valuation fears
Thursday 07 Jul 2022Shares in private equity investment trust Chrysalis Investments (CHRY) continued to fall following reports in the Wall Street Journal that investee company Klarna is attempting to raise approximately $650 million from existing investors at a significant discount to previous funding rounds. Buy now...
This is where investors made money in the first six months of 2022
Thursday 07 Jul 2022The first half of 2022 has been tough for both experienced and novice investors with very few places to hide. However, it was possible to make money if you backed oil and gas producers and defensive stocks, among several other sectors. Virtually nobody would have predicted that the UK’s FTSE 100...
AO World shares slide to a record low on cash flow concerns
Thursday 07 Jul 2022As if the first half of 2022 wasn’t tough enough for online electricals retailer AO World ( AO. ) , with a cut to profit guidance, the second half started with a thorough drubbing for the shares. After reports that one of its credit insurance providers had cut cover for its suppliers, AO shares...
Why stock markets are taking Russia's debt default in their stride
Thursday 30 Jun 2022This week marked a landmark in international bond markets after Russia defaulted on its foreign debt for the first time in a century. Despite having a month’s grace, Moscow missed interest payments on $100 million of euro-denominated sovereign bonds on 27 June. Russia has struggled to keep up with...
Apple aims to arrest sagging share price as new product launch rumours swirl
Thursday 30 Jun 2022A pple (AAPL:NASDAQ) is thought to be preparing a flurry of new product launches as the tech giant attempts to reverse a slump in its share price. This year, Apple shares have fallen more than 22% as investors rejected growth stocks in the face of rising interest rates aimed at curbing high...
Investment trusts prove to be key sources of dividends
Thursday 30 Jun 2022Investment trusts paid record dividends of £5.5 billion in the 12 months to the end of March 2022, up 15.4% year-on-year according to research by Link Group. Dividends from investment trusts have proved much steadier through the pandemic than those from individual companies listed on stock markets...
The earnings downgrade cycle has only just begun, suggesting more pain ahead
Thursday 30 Jun 2022Up until last week’s (ended 24 June) gain the US benchmark S&P 500 index had dropped in 10 of the prior 11 weeks and entered bear market territory which is a 20% drop from the prior peak. While share prices have dropped, earnings forecasts from analysts have barely moved. This means the forward...