The £19k cost of trying to time the market

“Buy low, sell high” – that’s every investor’s goal. However, it’s easier said than done. Especially if you’re trying to time the market, which is notoriously difficult, if not impossible. It can also be costly. Our research shows just how costly it can be when you get the timing wrong. Time in the market – … Continue reading “The £19k cost of trying to time the market”

Does the January effect really exist?

Is the first month of the year really a good time to invest?  January 2020 was either a good month or a bad month for investing. While 10 of the 23 countries in the MSCI World index of global developed markets generated a positive return, more than half lost money. Returns varied between +6.1% (Portugal) … Continue reading “Does the January effect really exist?”

Surprises in European equities

Why have European equities performed so well in 2019 and what are the prospects for 2020? For much of 2019, European equities were an unloved asset class, shunned by investors. At first sight, this was understandable – the region is growing only slowly, wracked by political tensions and wrestling with headwinds in vital sectors such as … Continue reading “Surprises in European equities”

Don’t lose your investment marbles in emerging markets

If one of your investments jumped 3,800% in less than a year how happy would you be? Ecstatic, probably. Now imagine how you would feel if 98% of these gains evaporated within a short few minutes. Utterly terrible, I’m sure. Well, that’s exactly what happened to shareholders in Hong Kong listed ArtGo last month  – … Continue reading “Don’t lose your investment marbles in emerging markets”

Deforestation leaves investors exposed

Owning companies linked to forest destruction risks major financial losses. But focusing on engagement and demanding transparency and supply chain discipline could bring rich rewards. Deforestation linked to growing commodities demand presents significant risk of loss for investors, but also opportunities to benefit by engaging companies and adding to pressure for stricter policy actions. Deforestation … Continue reading “Deforestation leaves investors exposed”

Investors must get used to an environment of lower growth

We will have to get used to an environment of lower growth. However, this is the kind of environment in which active managers will truly prove their worth. “Nobody buys a farm based on whether they think it’s going to rain next year. They buy it because they think it’s a good investment over 10 … Continue reading “Investors must get used to an environment of lower growth”

The comfort of strangers: investors should look to the less familiar

Adaptation is necessary when an environment becomes less favourable. So, as the global outlook assumes a gloomier cast, we believe investors should look beyond the comfort of conventional asset classes and bolster their portfolios with less familiar – and less correlated – assets. Secular stagnation? Recent headlines provide no shortage of alarming developments: a lurch … Continue reading “The comfort of strangers: investors should look to the less familiar”

The six biggest bull runs since 1962 (and their corrections)

The current bull market in US stocks started in March 2009 at the height of the global financial crisis and is the longest in recent history, beating the rally between July 1962 and May 1970 by over four years. At the time of writing, the bull market is still going. US stocks are up more … Continue reading “The six biggest bull runs since 1962 (and their corrections)”

Disruption from climate change is only just beginning for investors

Financial markets remain unprepared for the extent of disruption that climate change will bring, according to a new report. In September, the United Nation’s Principles for Responsible Investment (PRI) – a network of investors whose members include 500 global asset managers – released a report concluding markets have not priced in the coming policy response … Continue reading “Disruption from climate change is only just beginning for investors”

It really is a digital world

Over the last ten years of recovery from the boom and bust of the western banking crash, shares have performed well. World equities have produced a return of 155% over the decade. The years have been characterised in the advanced world by an unusual combination of low interest rates and low inflation. Cheap imports from … Continue reading “It really is a digital world”

Looking back at the markets through September

A selection of articles looking back through the markets last month. Global Market Review What next for Brexit? The long-running Brexit saga took a new twist in September as the clock continued to tick towards its Hallowe’en deadline. After being suspended earlier in the month, the UK Parliament was hastily reconvened towards the end of … Continue reading “Looking back at the markets through September”

Why as an investor I’m looking through Brexit fears

Following the twists and turns in Westminster of the past few weeks I expect many more market participants will simply place UK equities in the “too difficult” basket. Anecdotal stories of overseas investors selling their last UK stocks could start doing the rounds again. Brexit and political uncertainty have been a drag on UK equities, … Continue reading “Why as an investor I’m looking through Brexit fears”

Has value investing been disrupted?

Disruption is a major theme in stock markets today with companies such as Amazon and Uber challenging the traditional approach to their respective industries. Such companies are an example of so-called “growth” stocks, with investors attracted by their prospects for expansion and future revenue growth. Investors in “value” stocks, in contrast, focus less on a … Continue reading “Has value investing been disrupted?”

How does geopolitics impact investment returns and what can you do about it?

Schroder’s economists have analysed the effect geopolitical risk can have on investors’ portfolios. Should investors simply hold their nerve during volatile times? Or is it better to entrust fund managers able to take a more dynamic approach? Geopolitics can significantly impact investment returns; whether it’s trade wars, actual wars, populist politicians or terrorist attacks. Geopolitical … Continue reading “How does geopolitics impact investment returns and what can you do about it?”

Ten things every investor needs to know about offshore wind power

The solar and onshore wind industries have long been areas of focus for climate change investors, but offshore wind has always lagged behind because of its higher cost. However, that is set to change, with substantial growth likely in the sector over the coming years, as offshore wind approaches cost competitiveness with conventional electricity generation. … Continue reading “Ten things every investor needs to know about offshore wind power”