Education

What happens to bond prices if interest rates rise, and the latest Co-Op news.

If interest rates rise, what will typically happen to bond prices? That was a question posed to 30,000 US adults according to a report in the FT today. I would hope readers of this blog know the answer because it is quite important now that QE might be tapering off and interest rates rising. Only 28% got the answer right, which is of course that bond prices will fall. People buy bonds in the belief that they are “safer” than equities. It ...

How to pick small cap stocks – just follow Harry Nimmo

Yesterday was the Annual General Meeting of Standard Life UK Smaller Companies Trust and those who like investing in small cap stocks would have found it useful to go along and learn from the master – fund manager Harry Nimmo. Gordon Humphries said that the company is basically “Harry’s 50 best ideas”, i.e. it’s a conviction portfolio but with no individual holdings allowed to go above 5%. It has a fairly low yield at 1.4% currently but that has grown at a ...