Staying on track: The secrets to rebalancing your portfolio November 18, 2014 No financial adviser can stress enough that it is unwise to expect your portfolio, however carefully put together, to fulfil your investment goals automatically over the long term. Periodically reviewing the assets you hold is vital if you don’t want to fall victim to portfolio drift. “Rebalancing instills good investment habits, trimming the holdings that [...]
Why UK commercial real estate is still hot property November 18, 2014 But political risks are rising – whether the Conservative Party or Labour win next May. If we take the temperature of investors in commercial property right now, we would find warm support for the sector in the UK. In a low interest rate environment, and with returns from property far outstripping bond yields, [...]
The Narendra Modi effect: Why Indian stocks could keep on soaring November 11, 2014 Of the 1,559 equity funds monitored by FE Trustnet, the top seven performers over the last 12 months have all been India specialists. Eighth spot is held by a biotech fund, but the next six spots are again occupied by funds focused on India. Out of the top 20 funds, 16 are India equity [...]
Back to the 90s: What’s in store for 2015 markets November 11, 2014 US equities will stay in bull mode, but the problems for Europe look likely to persist. As we approach the end of 2014, many investors will be reviewing the performance of their portfolios, with a view to repositioning them ready for 2015. Here are my thoughts on where the major markets are heading. [...]
Active versus passive funds: The great investment debate November 4, 2014 Index trackers may be in fashion, but are they worth it? Investment legend Warren Buffett told shareholders back in March that he’ll recommend that, when he dies, his widow should put 90 per cent of her money in a fund that tracks the S&P 500 index. “I believe the long-term results from this policy [...]
Rethinking bonds: How safe are gilts? November 4, 2014 Automatically fleeing to the safety of fixed income could expose you to capital erosion. There is a fundamental flaw with many investors’ perception of risk. Sophisticated investors will grasp the situation in an instant, of course, but many amateurs still regularly fall foul of it. The flaw relates to the implied, or theoretical [...]
How to guard against inflation when investing in bonds November 4, 2014 Periods volatility in equity markets typically see investors flee to the apparent safety of fixed income – especially the bonds of major Western governments, the yields on which are often described as the “risk-free” rate. But as Christopher Maule of the UK Bond Network argues, it’s a strange definition of “risk-free” that sees investors exposed [...]
What’s the right risk profile for you? Key questions to consider October 28, 2014 Think carefully about your ability to handle high volatility. Working out the appropriate level of risk for an investment portfolio has become a far more sophisticated process in recent years. Where advisers would once have asked clients just to tick a box marked “adventurous” or “cautious”, says Jason Hollands of Tilney Bestinvest, investors today [...]
Goal-based investing: Why it pays to look at the big picture October 21, 2014 There’s no golden rule, but don’t be afraid to take risks. The casual observer might think that the only way to invest is to seek the highest possible return on a single pot of money, chasing the latest themes in markets and following certain star fund managers. But the experts say that goal-based investing [...]
Property in London: Is it a safe asset? October 7, 2014 Base rate hikes and a strong pound will dent prices, says Yogi Dewan THE EASY money in property markets was made a long time ago. That said, real estate remains the ultimate safe haven for many investors, as they consider it to be a better alternative to investing in global equities, government bonds or other [...]