Cash rich and bored? Be careful what you do with your money

As the pandemic has left many people with more time on their hands but little opportunity to spend, they have been speculating in the markets. But don’t forget, says Merryn Somerset Webb: investing carries real risks.

Family out walking in Tehran
Many Iranians speculated on the stockmarket – and lost
(Image credit: © Fatemeh Bahrami/Anadolu Agency via Getty Images)

Back in 2016 I suggested that you consider buying a small stake in the Iranian stock market. I don’t suppose anyone did. It wasn’t exactly easy to get in at the time and my optimism about the economy was pretty misplaced. But if you found a way, you would have bought in with the index on about 50,000. You could then have sold on 8 August with it at 2,000,000. You’d have run into a little bother with the currency, of course. The rial has been in inflation-driven collapse since 2017. But perhaps you were clever enough to hedge that a little.

I’m not going to worry about you. I am, however, going to worry about the many inexperienced savers who poured their money into the market a bit too late in the day. Some three million of them have put more than 40 trillion rials (£740m) into stocks this year alone.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.