To Risk or Not Risk, That is the Question

March has been and gone and I’ve not found time, or truth be told the inspiration to pen a single investment blog. At a time when I have been very busy with investment reviews and end of tax year planning, stock markets have fortunately been tranquil. With equity markets hitting new highs my investment reviews have all followed the same …

Roller Coasters & Defensive Back Fours

Yesterday the FTSE 100 fell to its lowest level since August 2012. The sharp global stock market falls in the last six months have been attributed to fears of slowing economic growth in China. However China has had a side-kick to gang up on stock markets – the falling oil price.  A clear linkage exists between the two. Both are …

Time to Exit?

I would not have ordinarily expected to be writing my third blog post 13 days into the New Year. However these are extraordinary times with significant stockmarket volatility and this morning I had two concerned clients e-mail me. One asked if she should be worried and the other noted “that investments were going mad again,” (I love that) and asked …

Volatility & Interest Rate Sensitivity

A recent feature of global markets has been increased volatility in both equities and bonds. Clearly the Greek debt crisis has weighed on equity markets especially in Europe. Incidentally UK banks have very little exposure to Greek debt although the knock on effect of a default could be significant given the EU is our biggest trading partner and the potential …

Super Taper Tantrum?

You may recall back in May 2013 there was a sharp sell-off in equities and fixed interest when Ben Bernanke, the chairman of the Federal Reserve, the US central bank announced that tapering of QE was ready to start. The market ignored the good news that the patient, the US economy could come off its money printing life support and …

Investment Risk, Volatility and Loss

Due diligence on the risk of investment is fundamental to investors, advisers and fund managers. No one wants to lose money, whilst the holy grail is to obtain strong investment returns with minimal risk. The problem is defining what risk is, especially as the term is variously understood by different commentators. The key message in this blog is that volatility …