Investment Strategies

Will Passive ETFs be the Death of Capitalism?

Post Date: January 24, 2025

A growing trend of flows away from active investors to passive index trackers may damage the price discovery process and efficient capital allocation. My attention was recently drawn to this article in the Financial Times. It reports that $450bn was withdrawn from actively managed stock funds in 2024, with $1.7tn flowing into ETFs (though it is not clear what proportion of that ETF money has been allocated to passive, index tracking ETFs). It strikes me that this poses a real problem to the ...

Nvidia might be the biggest name in AI right now, but here’s why you should know about ASML

Post Date: December 6, 2024

This article reflects the opinions of its author and not necessarily those of ShareSoc. If you are a technology investor or simply tech-curious, you have likely heard of Nvidia. The US giant has become synonymous with Artificial Intelligence (AI) innovation, but there is another key player worth knowing: ASML, the Dutch company quietly revolutionising the technology landscape. Who is ASML? ASML Holding N.V. is a Dutch company founded in 1984. It is headquartered in Veldhoven, Netherlands, and is publicly traded on the Euronext Amsterdam ...

Funds should not be judge and jury of their benchmarks

Post Date: November 20, 2024

This article reflects the opinions of its author and not necessarily those of ShareSoc. Royal London marketing email re profit sharing prompts Cliff Weight to investigate the real investor costs and compare/contrast them to actual performance Vs. standard benchmarks (always key). As Royal London is a mutual, without the need to make large profits and pay dividends to shareholders, one might be tempted to think they might have lower fees and, net of fees, might outperform other fund managers. When I received ...

The Future of Smaller Company Capital Markets in the UK

Post Date: November 1, 2024

This article reflects the opinions of its author and not necessarily those of ShareSoc. New Financial Report Launched On 17th October, I attended the launch of New Financial’s excellent report, which was held at the London Stock Exchange. I recommend reading the detailed version (c 35 pages), which I regard as required reading for all serious investors. Full report Summary of the report My key takeaways: Swedes are 5 times as likely to invest in shares than Brits. (Around 40% of Swedish adults have a simple and ...

Risk, Returns and Optimising Performance

Post Date: September 5, 2024

There are various straightforward steps that self-directed investors can take to evaluate their portfolio and ensure it is balanced, appropriate to their needs and producing optimal returns. This is my personal checklist. First, understand your own attitude to investment risk. When you measure risks and returns, please remember they are affected by a number of factors, including equity and bond returns, currency movements, interest rates, inflation and taxes. Consider your risk profile in the range of 0 to 100, where 100 = all ...

What really drove August’s market sell-off?

Post Date: September 5, 2024

In the first week of August, global stock markets sold off sharply - but what was driving that correction? Ram Sachdev highlights the pivotal role played by the ‘yen carry trade’ The recent market correction (defined as a decline of more than 10%) has raised questions among investors as to what underpinned the sell-off. One key factor was the role played by the yen carry trade at that time. What is a carry trade? A carry trade is a financial strategy in which an ...

Wealth Management Advice versus DIY investing

Post Date: April 10, 2024

This article reflects the opinions of its author and not necessarily those of ShareSoc. £300 or £3,400 of fees (i.e. costs) you pay each year? £300 or £3,400 of costs/advice fees is the choice that an investor with a £170,000 portfolio would face if he/she invested in a Vanguard passive fund with interactive investor or sought individual financial advice from one of the UK’s leading firms of advisers. £170,000 is the average portfolio of a St James’s Place client so is a useful ...

Portfolio Review 2023 – Mark Bentley

Post Date: January 23, 2024

This article reflects the opinions of its author and not necessarily those of ShareSoc. Introduction This is now my fourth annual comprehensive portfolio review. See my 2020 review for an explanation of my investment objectives, strategy, "asset types" and investment accounts. My 2022 review can be found here. 2023 was again a difficult and disappointing rollercoaster year. For the second consecutive year my results underperformed my FTSE All-share total return benchmark. See "Results Breakdown" below for the gory details. At least this year my aggregate ...

Bonds

Post Date: November 9, 2023

This article reflects the opinions of its author and not necessarily those of ShareSoc. Is it time to buy bonds? I have personally been a huge sceptic of bonds and hence a sceptic of the 60/40 model of equities to bonds put forward by many financial advisers as a model for many investors with medium risk appetite. Bonds have had a 40-year bull market, but all that came to an end when interest rates went up from 0.25% to around 5% as QE was ...

Portfolio Review 2022 – Mark Bentley

Post Date: January 19, 2023

This article reflects the opinions of its author and not necessarily those of ShareSoc. Introduction Following on from my reviews in 2020 and 2021, I have now conducted a similar exercise for 2022. See my 2020 review for an explanation of my investment objectives, strategy, "asset types" and investment accounts. My 2021 review can be found here. I think most investors will have found 2022 a difficult year and I was no exception! See "Results Breakdown" below for the gory details. Whilst my complete portfolio ...

Year End Portfolio Review of 2022 – Roger Lawson

Post Date: January 4, 2023

The views expressed in this article are those of its author and not necessarily those of ShareSoc. As I have published in previous years, here is a review of my own stock market portfolio performance in the calendar year 2022. I’ll repeat what I said last year to warn readers that I write this for the education of those new to investing because I have no doubt that some experienced investors will have done a lot better than me, while some may ...

Portfolio Review 2022 – Cliff Weight

Post Date: January 2, 2023

This is a personal blog by ShareSoc Director Cliff Weight. The views expressed are my own and do not purport to represent ShareSoc. Neither ShareSoc nor I are authorized to give financial advice, and nothing in this blog should be considered advice. Do your own research! Performance Overview for 2022 My portfolio numbers for 2022 were: Everything – all equities, ISAs, SIPPs, OEICS, property, etc -6% Cliff’s portfolio F - the ones I actively manage. These are mainly small cap and AIM, i.e. growth shares -29% My benchmark = FTSE ...

Investment Strategies

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