Have you ever seen a headline saying equity markets are “too high”? Or that a market fall is right around the corner due to overvalued equities, or “dangerous” all-time highs? Some investors fear that equities reaching new heights means a downturn is right around the corner. Although acrophobia—the fear of heights—may have been a useful
Many investors, whether retired or not, rely on cash from their investment portfolios at some point. This can be entirely appropriate and a great way to put your wealth to work. What is unfortunate, however, is that many investors assume that to generate this cash flow they need a portfolio full of dividend-paying equities or
In his recent testimony to MPs, Bank of England Governor Mark Carney made headlines by claiming the Brexit vote had made British households £900 poorer than they would have been if Remain had won. Most of the media coverage dwelled on the political implications, including an apparent backlash from prominent pro-Brexit politicians. While we remain
Instincts are part of being human. Whether helpful or not, our instincts creep their way into our daily decision-making process. Unfortunately, investing decisions are no different. Why “unfortunate”? Our instincts often work against us in investing. You may hear your peers mention they just “knew” Equity X would fall 15%. We hear these stories all
At first glance, investing passively may seem easy. Pick a low-cost fund or funds reflecting a broad market index then hold it forever and watch your money grow. The idea behind passive investing makes sense. As long as you don’t touch the money invested, your returns will mimic those of the index minus any fees—which
If you read magazines, watch the news or even just log on to social media, you may see a common theme: the world is more interconnected than ever before. However, this isn’t a new phenomenon. As every decade in modern history passes, the world continuously grows closer—economically speaking. Unfortunately, many investors are just beginning to
No matter your level of sophistication, we think there is a common thread amongst investors: They are all fallible humans. Whilst no one can ensure they will make no retirement investing errors, there are some basic points we think investors should revisit from time to time—a few “do’s and don’ts.” Here we group some under
“Equities seem so uncertain now. I’ll just wait until the market settles down—then I’ll make a move.” Many investors may think this statement makes sense at first—waiting until market volatility settles, or a correction or bear market recovers before putting your money into equities. But what exactly is the sign investors are waiting for? If
As the year winds down, we approach the season when some investors do an annual portfolio review. Checking in on your investments, whether annually or at some other interval of your choosing, can be quite helpful, in our view. However, we suspect doing so can lead to the temptation to rearrange investments based on the
Mario Draghi’s term as head of the European Central Bank (ECB) doesn’t end until next October, but we are already finding financial media fretting over who will replace him. Meanwhile, some investors wonder how Draghi’s replacement will manage eurozone monetary policy. Will the eurozone be weaker after the ECB chief who promised to do “whatever
In our experience, we find many investors approach choosing securities based on odd criteria—like perceptions of safety from risk. A common presumption we have encountered in this vein: Equities are risky because their prices tend to swing, sometimes a lot, in the short term. Investors often presume debt securities are safe because their prices tend
All summer, financial media and UK policymakers have been preoccupied with the possibility of a ‘no-deal’ Brexit, in which the UK leaves the EU next year without a new trade deal in place. International Trade Minister Liam Fox and Bank of England Governor Mark Carney recently warned that the likelihood of this is rising. Industry
Here at Fisher Investments UK, we think that looking at the death cross has major flaws as a technical indicator and a poor history of predicting the future. A death cross occurs when a short-term downtrend (stocks’ 50-day moving average) falls below the longer 200-day moving average. According to the theory, when a death cross
In our review of financial media, headlines tend to highlight areas of the market that are either doing very well or very poorly. The extremes, hot or cold. Investors seeking opportunities may be tempted to look into shares of companies in the former camp. Often, the media coverage showcases the immense growth potential of these
People respond to incentives. And in market economies, few incentives top profits. In the energy industry, oil prices are a crucial determinant of drillers’ profits — and therefore, their behaviour. When a supply glut crushed Brent crude oil prices by -77 per cent from June 2014 to January 2016, drillers focused on areas where they
Nearly two years ago, the UK’s vote to leave the EU shook sentiment globally. In our coverage of UK media, we found many economists forecasting that Brexit would have major implications, including some claiming the vote would stoke uncertainty and harm Britain’s economy. We saw economists single out business investment, commercial property and finance jobs
On 6 March, global equity markets marked the nine-year anniversary of the global financial crisis’s end and the beginning of the bull market that followed[i]. Because markets haven’t yet recaptured levels hit before a pullback began in mid-January, it is premature to say the bull market is more than nine years old — we won’t
For more than a year and a half now, the UK economy has defied fears of the Brexit vote causing a recession. But the worries haven’t stopped — instead they have morphed. The latest iteration, seen throughout the financial media, warns that the UK is entering a Japanese-style ‘lost decade’ where firms hoard cash, invest
The FTSE 100 finished strong last year, gaining 5 per cent in December to bring full-year returns to 12 per cent — and cheering up UK investors in the process [i]. One big contributor was energy shares, which spent most of 2017 in the red before a strong fourth-quarter rally. In the UK and globally,
Ah, the Budget. The business world and financial media’s favourite annual event garners so much attention, you’d be forgiven for thinking Chancellor Philip Hammond was Santa and that red briefcase his bag of toys. Who was naughty? Who was nice? Who will get goodies, and who lumps of coal? Whether fearful or cheerful, headlines regularly
