In MoneyWeek this week: taming the investment jungle
This week in MoneyWeek: how to survive in the jungle of high inflation and high growth; sage advice for cohabiting lovers; and the rise of the robo-adviser.
This week in MoneyWeek: how to survive in the jungle of high inflation and high growth; sage advice for cohabiting lovers; and the rise of the robo-adviser.
Plus, how to invest in tech stocks, David C Stevenson's top investment ideas for the year to come, and all the usual features including news from the markets, politics and economics, and a whole host of share tips.
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It's a jungle out there
Charlie Morris fund manager, editor of the Fleet Street Letter, and one of our semi-regular contributors, has devised an economic theory. "When it comes down to big picture' economics", he says, "you can boil it down to two key forces: inflation and interest rates (or bond yields)", which move with economic growth. Using these two forces, he has come up with four investment "ecosystems" jungle, grasslands, ice cap and desert. Each represents a different economic environment. So, for example, when you have low inflation and high bond yields (ie high economic growth), we are in a "grasslands" ecosystem, where equities are king. Get high inflation and low growth, and you'll end up in the desert, and you should plump for gold. Now, says Charlie we're in the jungle. Hot and steamy, so you should be looking at commodities and emerging markets.
But frankly, you need to read the whole piece. Charlie does a much better job of explaining it than I can. And he picks a dozen stocks to buy into right now. Sign up to the magazine here and find out what they are.
Property advice for cohabiting couples
Next week sees Valentine's Day. The price of red roses goes through the roof, the country's intimate little bistros turn the lights down low, and we all spend much longer than we should looking for a card that strikes just the right tone. But, unfortunately, life's not all chocolate and flowers. You fall in love, create the perfect home and then the sparkle goes, the bickering starts, and he runs off with the milkman. That would be bad enough. But who gets the house? If, in the soft-focused flush of romantic love, you didn't get round to thinking about it clearly, it could get very messy indeed.
So, if you're about to move in with Mr or Ms Right, take the time to bone up on your property rights. You just never know. Emma Lunn looks at what you need to think of before moving in, including such things as the division of ownership and the difference between joint tenants and tenants in common, for example. And what to do if it all goes unpleasantly wrong. Find out now with a subscription to the magazine. And have a happy Valentine's Day.
Will robots fill the advice gap or destroy the financial system as we know it?
Robots are taking over everything. In the last few years, they've been making strides into the world of financial advice. With the demise of commission based fees for financial advisers an "advice gap" has opened up. Many people with small pots of money don't want to fork out £500 or so for a consultation. And so, the "robo-adviser" has been created to "disrupt" the financial advice industry.
These online services ask you a few questions about your circumstances and your attitude to risk, then invest your money in an appropriate portfolio. The FCA is keen on them. But Mark Carney's not sure. He thinks they could pose a risk to financial stability. Find out more about this new way of investing in this week's magazine.
Don't get burned by tech
Nearly all of today's big-name tech firms relied on backing from venture capitalists in their early stages, says Matthew Partridge. Back the right one and you could be set for life. But while few of us will ever have the chance to invest directly in a tech startup, there are many small tech stocks on the stock exchange and Alternative Investment Market. But how do you go about picking the best ones? Matthew outlines five key questions to ask before you buy. Find out what they are in MoneyWeek magazine.
Banking scams, the pensions dashboard and should we abolish corporation tax?
Elsewhere in the magazine, Ruth Jackson looks at how internet scams have become increasingly sophisticated since the days of a Nigerian prince emailing you with a promise of millions, and explains how you can avoid falling victim yourself. David Prosser asks if the government's pensions dashboard, scheduled for launch in 2019, will be ready and if it will actually do any good. And Matthew Lynn explains why he thinks a corporation tax of zero percent is a good idea.
There's far too much more in this week's 48 pages to go into here. We round up all the best share tips from around the UK press, a professional investor picks three bargain British stocks to buy now, and Chris Carter picks three of the best Valentine's Day boltholes. All this, and much, much more. Why not try it out now?
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Ben studied modern languages at London University's Queen Mary College. After dabbling unhappily in local government finance for a while, he went to work for The Scotsman newspaper in Edinburgh. The launch of the paper's website, scotsman.com, in the early years of the dotcom craze, saw Ben move online to manage the Business and Motors channels before becoming deputy editor with responsibility for all aspects of online production for The Scotsman, Scotland on Sunday and the Edinburgh Evening News websites, along with the papers' Edinburgh Festivals website.
Ben joined MoneyWeek as website editor in 2008, just as the Great Financial Crisis was brewing. He has written extensively for the website and magazine, with a particular emphasis on alternative finance and fintech, including blockchain and bitcoin.
As an early adopter of bitcoin, Ben bought when the price was under $200, but went on to spend it all on foolish fripperies.
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