Investing For Income
Investing for income is possible even in this environment of low interest rates. Income investing means that you have to take some risk with your capital to achieve these returns so it is important to understand the risks. In this blog we discuss current dividend yields and the risks involved.
Bond Bubble Explained
The yield on many government bonds has turned negative and that has led some people to suggest that we're in a bond bubble. Prices are just simply too high because they have been over inflated by central bank's pumping money into the economy. If they are too high then perhaps they are about to crash so in this blog we will look at how big a crash in the bond market could be and where we should expect rates to be in a long term.
How To Invest During Recession
Global growth is slowing down and we've also seen the U.S yield curve invert which usually signals that we're going to get a recession in the coming year. What does that mean for investors and how can we position our portfolios during these periods of recession? It may not happen immediately but it's going to happen at some point, so it's good to know how to react.
Buy or Rent a House – Which is Best?
Is it better to buy or rent your house? The buy versus rent house decision is made more difficult because most of us think that renting is throwing money away. But if you buy a house you're throwing away interest payments on the mortgage interest and maintenance costs for the house plus the huge costs of purchasing and selling.
How I Invested 20k – Update for Q3 2019
Many of you asked me how I invest my own money, so in this blog I'm going to look at my own portfolio in quite a bit of detail. Do NOT copy my portfolio! The goal is for you to see my approach to investing then use it and adapt it to your own circumstances and beliefs. What is appropriate for me is almost certainly not appropriate for you.
Michael Burry Interview – Are We In An Index Bubble?
Money has flooded into the cheapest, largest passive index funds. In an interview with Bloomberg, Michael Burry, who successfully predicted the Dot Com Bubble and US Housing Bubble, says this has created an Index Bubble. In this video, we explore some of his comments from the interview and see whether it describes an investment opportunity.
Blackrock MyMap or Vanguard LifeStrategy: Which is best?
Blackrock has launched MyMap which is a set of funds to compete with Vanguard's LifeStrategy funds. Blackrock has undercut Vanguards[...]
Are investments guaranteed by FSCS?
If your Stocks and Shares ISA or SIPP provider goes bust your money and assets are protected if the provider is a firm regulated by the Financial Conduct Authority (FCA). This is partly because the FCA force the provider to separate their money from your money. If you hold a cash ISA your money is covered up to a limit of £85,000 per person, per financial institution. If you have been mis-sold an investment by a firm that has failed you may be eligible for compensation up to £50,000.
Review of Scottish Mortgage Investment Trust
Scottish Mortgage Investment Trust is a very successful, very large active equity fund (£7.6 billion in October 2018). Its returns have been very good for the last decade and on the back of its performance it has single-handedly made investment trusts sexy again. In this article we look at how the fund is run, the risks you take by investing in the fund and we consider whether this is a good time to buy the fund.
Vanguard vs IWeb: Which Is The Cheapest ISA Platform?
In this article we compare the costs of two of the cheapest ISA platforms: Vanguard and IWeb. IWeb's annual fee is zero, but it has a setup fee and charges for trades whereas Vanguard charges 0.15% of the amount you invest capped at £375 per year, has no setup fee and you can trade for free. It turns out that the cheapest platform depends on how much you invest and how much you trade.
Active vs Passive Performance: S&P’s Andrew Innes On His Index vs Active Report
Here's my interview with Andrew Innes of S&P Dow Jones Indices, author of the European S&P Index Versus Active report which tracks thousands of fund managers over a very long period of time, often up to a decade, to see whether they managed to do what they're paid to do which is to beat their benchmark.
Modelling the Economic Impact of Brexit
Here's the transcript of an interview with Amit Kara who is head of UK macroeconomic forecasting at the National Institute for Economic and Social Research. The reason why this is interesting is that it gives you an insight into why we build models, as well as insights into the possible impact of Brexit on the UK economy.
How To Build A Two Fund Portfolio
How many funds do you need in your portfolio? A fairly radical view is that you need just two: a share fund and a bond fund. What's wonderful about that is that it's so simple. Asset allocation simply becomes a matter of how much money you put into fund A and into fund B but if you do it in sterling there are some considerations that you have to take into account and a lot of the proponents of the two fund model are US dollar based investors. So let's see how we could do that in a bit more detail.
Review of Smithson Investment Trust
Fundsmith is about to launch a new fund called Smithson. This is exciting, because Fundsmith is such a successful asset manager. It's global equity fund has beaten its index consistently over a very long period of time. So what is it that this new fund is setting out to achieve how much will it cost and how likely is it to succeed?
How To Transfer A Stocks & Shares ISA
An Individual Savings Account (ISA) is like a tax invisibility cloak. You don't pay tax on any investments held in the ISA. Lots of companies offer ISAs, but if you are not happy with your existing provider you can switch to another one. In this article, we show how to work out the cheapest way to do the transfer without losing your ISA allowance.
How to Invest During Brexit
UK investors can't ignore Brexit. Brexit will be one of the most important drivers of return in your portfolio over the next few years, so it is worth getting your portfolio prepared. Here we provide an approach and a spreadsheet that helps you decide which outcomes are most likely and position your portfolio in line with your beliefs.
Fractional shares, comparison of fees versus performance of active funds & correlation of commodities with robo adviser funds
8th December 2019 - Notes from the weekly call for PensionCraft supporters.
Ray Dalio’s approach to diversification, currency hedging explained, risks associated with undervalued markets & Saudi Aramco’s Initial Public Offering
1st December 2019 - Notes from the weekly call for PensionCraft supporters.
Russian Equity Funds, OEICs vs ETFs, Taleb Barbell strategy, ETF closures & PMI indices explained
24th November 2019 - Notes from the weekly call for PensionCraft supporters.
China ETFs & Chinese equity, income funds and quantitative methods explained
17th November 2019 - Notes from the weekly call for PensionCraft supporters.
CAPE weighted portfolio, junk bonds vs emerging markets bonds, negative rate mortgages, safe saving ETF & short term investment.
10th November 2019 - Notes from the weekly call for PensionCraft supporters.
Fallen Angels, internal rate of return, quality dividend funds, volatility & credit risk.
3rd November 2019 - Notes from the weekly call for PensionCraft supporters.
What are the best long term asset allocation strategies? What level of dividend cover should I aim for? Is the science of Chartists worth studying?
27th October 2019 - Notes from the weekly call for PensionCraft supporters.
The Best Short Term Investments, Factor Funds’ Performance, & US Deficit Investments.
20th October 2019 - Notes from the weekly call for PensionCraft supporters.
Do Active Managers outperform during market downturns? KIID Transparency, Commodity Correlation & Thematic ETFs.
13th October 2019 - Notes from the weekly call for PensionCraft supporters.