magazine archive

magazine archive

Editor's View

Extreme fear and capitulation: looking for signs of a market bottom

Thursday 19 May 2022

UK stocks continue to surpass all expectations by being one of the best performing regions for equities around the world. A near-2% loss for the FTSE 100 index is much better in relative terms than the 28% decline seen for the US Nasdaq or a 15% fall for Hong Kong’s Hang Seng year-to-date. Until...

Times are getting tougher so health check your investments now

Thursday 12 May 2022

It’s always disappointing to see businesses struggle and sadly the numbers could get worse given the Bank of England’s warning about a big slowdown in the economy and 10% inflation. The troubles at McColl’s Retail ( MCLS ) have set the scene for difficult times ahead. The company has gone into...

Reasons why Amazon is not a great investment at the current price

Thursday 05 May 2022

For years many investors have viewed Amazon (AMZN:NASDAQ) as an undefeatable business that can do no wrong. Wherever it moved in the retail space, success swiftly followed. The rapid ascension of its cloud computing arm helped to drive big profits and the share price kept going up and up. Having...

There could be more pain to endure from rising oil prices

Thursday 28 Apr 2022

A higher oil price can be viewed as a tax on economic growth. For all the talk of a transition away from fossil fuels, oil is still key to powering the global economy and prices above $100 per barrel push up the costs for everyone, from the humble motorist at the pump to the largest global business...

It’s been a bad year for small caps but this dip is perfectly normal

Thursday 21 Apr 2022

Having exposure to smaller companies is meant to bring some excitement to a diversified portfolio. Unfortunately, some investors’ hearts might be racing due to pain rather than pleasure this year. Historically this part of the market has outperformed larger companies. For example, between 1955 and...

All the bad news priced into housebuilders and retailers? Think again

Thursday 14 Apr 2022

Stock markets are forward looking which means investors think mainly about a company’s prospects when they decide how much they are prepared to pay for its shares, or at what price they want to sell. Potential bad news tends to be priced into a company’s valuation before the event happens...

No short-term fix to the UK’s painful energy crisis

Thursday 07 Apr 2022

Amid soaring energy prices and talk of fuel rationing, there is real pressure for the UK to come up with a sustainable plan for secure and affordable energy. While a published document from the Government may still be some weeks away, comments from ministers suggest there are likely to be three key...

Listen to Terry Smith: don’t sell your best shares as stock markets recover

Thursday 31 Mar 2022

In reviewing the performance of the Fundsmith Equity Fund (B41YBW7) for 2021, fund manager Terry Smith said the fund ‘makes money with old friends’, referring to a group of stocks in his portfolio that regularly appear in the annual list of top contributors to performance. ‘This tells you to run...

Retail takeovers: when is a brand worth salvaging?

Thursday 24 Mar 2022

For all the troubles it has endured in recent years Ted Baker ( TED ) is still seen as a brand with some value based on the news US private equity firm Sycamore is weighting up a potential takeover of the clothing retailer. Ted Baker, once something of a stock market darling, has struggled in...

Amazon’s share price is about to become a lot cheaper

Thursday 17 Mar 2022

A high price can stop investors from buying a particular stock, simply because they cannot afford it. Not everyone has the $1,000+ which it costs to buy a single share in many US-listed companies. It’s a long-standing frustration but slowly we are seeing solutions to the problem. Amazon has joined...