August is typically a quiet month for markets with the holiday season in full swing and little economic or corporate news-flow to influence investors. But 2020 is not a typical year and global investors remained in ‘risk-on’ mode pushing share prices higher with the global stock market benchmark MSCI World index rising 6% - it’s best August for over 30 years.
Choosing your asset allocation is one of the key decisions you make as an investor. Whether you want to go all in on equities or mix them up with some bonds and perhaps some property or alternatives is up to you. But we asked an expert, Gavin Haynes of Fairview Investing with decades of investment experience under his belt, to share his thoughts and advice.
You may remember how we talked about ESG investing being a sort of spectrum going from light green to dark green. Another model that can help make sense of the evolution of ESG investing is the Spectrum of Capital, which was developed by Bridges Fund Management. This model categorises investment styles on a spectrum ranging from traditional investment all the way to philanthropy. The different subsets of ESG focused investing styles fit in between these two extremes. Ultimately, where you stand on the ESG investing spectrum really depends on what you want to achieve with your investments.
Investing is a great way to grow your wealth over time, pretty much as you sleep. But what if you want to see returns on your investments sooner? This is where investing for income comes in. Income investing is an investment strategy that is centred around building an investment portfolio that aims to generate a regular and, crucially, passive income stream.
When America sneezes, the world catches a cold is a well-worn saying amongst investors. The rationale being that as the largest economy, the rest of the world tends to be deeply affected by what happens in America - good or bad. And right now, it’s pretty bad.
Can you guess how many times £1 would have to double to make £1,000,000? The answer, astonishingly, is just 20 times! But guess how much you would have if you doubled your initial pound 10 times? Believe it or not, it would be just £1,024.
One of the most important decisions in investing is deciding on which asset class(es) to invest in. How much you should have in each is an asset allocation decision, which is usually based on two main factors – your time horizon, and your appetite for volatility (which we discussed in our last post). We will dig into that in another post shortly, but first, let’s get to know the building blocks.
The word ‘risk’ is often bandied around in the world of investing. It’s a pretty alarming term, especially when mentioned in the same breath as your hard-earned savings. Yet other investors seem to carry on quite happily regardless. Are they just crazy adrenaline junkies or do they know something we don’t?