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The US S&P500 gained 12.3% during the first quarter – the best first quarter for US equities since 1998, the year “Titanic” gave us records at the Box Office, but this paled into insignificance compared to the performance of the FTSE AllShare, up 16%, and China, up 29%, the best quarterly performance for China since…

What is your discipline, your strategy for investing? Let your winners win or take profit and move on? Hope your losers recover or stop-loss? Diversification or concentration?

The Dow Jones rose more than 7% in January and the Nasdaq more than 9%. December was undoubtedly an unpleasant month for stock investors, exacerbated by almost 500 US hedge funds closing their books for good. Such huge liquidation t created a ripple effect which unnerved investors otherwise preoccupied with fears of the consequences of…

Consensus forecasts for the S&P500 to finish 2018 at 2900 were blown away during the last quarter, led by profit-taking in tech in October, fuelled by fears of trade war consequences in November and capped off by autopilot rate raising talk by the Federal Reserve in December. At the start of of 2018, world equity…

The rout suffered by nearly all stocks during October / November was ended when Fed chief Jerome Powell stated on November 28th that he thought US interest rates were “close to being normalised”.

Halloween reprieve from October rout As in the wake of the financial crisis, only precious metals rally Technical heavyweights lose 20-35% from recent highs “In case of panic, DO NOTHING!” The Federal Reserve’s continual talk of constant tightening to more ‘normal’ rate levels, together with China-US trade tariffs, more Italian financial and political scares, a…

• US Fed removes “accommodative” from September statement • 2 year Treasuries get strong bid at 2.86% Federal Reserve chairman Jerome Powell told the markets last week in his September statement that effectively interest rates are now, at 2.25%, in a sweet spot of where they should be, given the current state of the US…

Slow, slow, quick – Strong US equity rally in the last week of August Dollar weakens to stem Emerging Market losses US equities ‘fair value’ following positive earnings season “If ever I got impeached, I think the market would crash”. So said Donald Trump during the third week of the holiday month, in the face…

Investors withdraw from equities to favour cash … but the case for US stocks “is as strong as it has ever been” MAGA: Make America Great Again – or alternative tech acronym? Where to invest next – Emerging Markets? For the first time since 2008, cash is returning something – not much in sterling terms…

China market into bear territory Indian disillusionment with Narendra Modi Oil and a Stronger Dollar impact equity markets Markets have gone into reverse of late. A trade war, higher oil prices, Brexit, Italy, and slower growth reports in China have sent shivers through equities. Earnings in the US for the last quarter may have been…

Robert Shiller (he of the CAPE Shiller ratio to better determine company price earnings ratios by ‘A’djusting the traditional measure of ‘P’rice ‘E’arnings by a ‘C’yclical factor which takes into account inflation’s impact on the [moving] average of ten years of earnings) is a renowned Nobel prize-winning economist, and he has been calling the equity…

A priority for many parents is to save for their children’s future. When considering financial planning options for parents, there is increasing recognition of the value of offshore single premium investment bonds in inter-generational financial planning.  

There was a sell-off in early February and then markets recovered. The last ten days of trading in March saw heavy selling. All of a sudden there is plenty to worry about: the threat of a new cold war; a trade war with China; Brexit; inflation; and now consumer privacy violation, leading to the likelihood…

The dramatic sell-off at the start of the February which produced the worst week since January 2016 (precipitated then by the Chinese property implosion), saw many global stocks in bear market territory (ie down at least 20%).  

At last, an equity market bump in the road! Until January 29th, the start of the year had been the best ever for shares. The 1-2% falls each day across all markets during the 29th and 30th were a welcome relief to those concerned markets were verging on the euphoric. There was a small rally…

After a year when global stocks saw their best performance since the financial crisis, we now look to whether they can continue their run.

Bond aficionados are looked upon as rather geeky! How exciting can you possibly be if you study the form of US Treasury Notes, UK Gilts or German Bunds? The fact is, the bond market is a predictor of economic growth and it pays to know something about it.

US President Donald Trump has nominated Federal Reserve Governor Jerome Powell to the top job at the US central bank. Powell is a former private-equity executive, banker and Fed advisor who favours continuing gradual interest-rate increases and sympathises with White House calls to ease financial regulations. Market reaction has been muted. Powell is not an…

Hurricane Harvey, which struck Texas with immense devastation and yet comparatively little loss of life, came and went amid the Summer holidays, more muscle-flexing from North Korea, a weakening US dollar, higher gold prices and, it has to be said, no real pull-back in equity values.

US stocks continue to trend higher, despite worries over high valuations. If you didn’t have exposure to the US, or were wisely diversified away from it, you experienced as lacklustre a July performance as June’s. “Ignore US equities at your peril” was the headline in one financial periodical last week, and judging by the way…

Under the headline, “The unique advantage off equities”, fund manager Terry Smith penned an article in the financial press recently, explaining how equities can compound in value over time in a way investments in other asset classes, such as bonds and real estate, cannot. “The reason is simple”, he says, “companies retain a portion of…

“If interest rates are destined to stay low for a prolonged period, not necessarily this low but low compared to their 50 year average, it makes any stream of earnings [from corporates] worth more money. It’s a huge bargain to buy stocks now, if you think rates stay low for 10 or 15 years”, said…

Sentiment toward the equity markets has definitely got more worrisome over the last month. After 8 years of a US bull market in equities, investors are very wary that the bull can continue. People want to sell out and bank profits; they don’t want to lose them in a decline which they fear could be…

Henderson gave their first talk of the year recently in Marbella to the Federation of European Independent Financial Advisors (FEIFA). As usual, they unveiled some interesting statistics: one third of grandparents in the UK now finance their children’s education through school; one quarter of grandparents finance their grandchildren through university; the average millennial checks their…

Terry Smith is a well-known and well-followed fund manager in charge of managing Fundsmith’s Equity unit trust and the Fundsmith Emerging Equity Trust (FEET:LN). Both funds have around 30 stocks in them, offering greater potential for gain but also loss if the allocation goes awry. This year the equity unit trust is up 28%, however…

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