Don’t be too quick to assume that stocks are overvalued
Remember, stocks are priced to deliver a positive return for investors. It’s a common misconception among investors that a market high signifies overvalued stocks. But interestingly, historical data suggests that average returns one, three, and five years following a new month-end market high are similar to those after months ending at various levels.
A retirement crisis in the making
The amount of money required to retire at a minimum living standard has seen a surge. The cost of living crisis is rapidly morphing into a retirement crisis. An escalating increase in food and energy prices means that the amount required to retire at a minimum living standard has seen a surge of nearly £2,000 […]
The Power of Pension Planning
A Tale of an £11 Million Retirement Pot. A Freedom of Information request to the Office for National Statistics (ONS) has revealed that a pension saver has amassed a staggering £11 million retirement pot. Further, 46,000 investors have pension pots exceeding £3 million, and 128,000 have nest eggs valued between £2 million and £3 million.
It’s time in the market, not timing the market!
The potential pitfalls of mistiming the market can be significant. Market timing is a strategy that involves determining the optimal times to buy or sell assets to maximise profit. It’s based on predictive methods and often uses technical indicators or economic data. However, this strategy can be risky and difficult to execute effectively.
Market Update – August 2023
August saw the global equity markets pull back slightly after the prolific performance they have delivered thus far in 2023, with losses in the major indices across the US, UK, Europe, Japan and China. This is not unexpected as historically, August has been shown to be one of the weaker months for equity market performance […]
August Newsletter
August saw many of the team take some well-earned R&R, returning in time for the new school year. For many of us, the end of August and the sighting of the Suhail star feels like the commencement of a new chapter and cooling temperatures; the team returns with fresh ideas and excitement for what is […]
Are stock markets stacked against the little guy?
Making it difficult to make informed investment decisions. Stock markets have long been hailed as a gateway to wealth and financial independence. With the potential for significant returns, it’s no wonder many aspire to invest in stocks. However, there is an ongoing debate about whether stock markets are genuinely fair for the average investor or […]
Think twice about chasing the biggest stocks
Positive news may push prices higher, but these changes are not predictable Investors must think twice about chasing the biggest stocks based on market capitalisation. While companies that grow to become some of the largest on the US stock market may initially have impressive returns, a study from 1927 to 2022 found that these stocks […]
The Evolution of Small-Cap Investing
Four Decades of Innovation at Dimensional In 1981, Dimensional launched its first strategy, the US Micro Cap Equity Strategy, which focused on investing in small capitalisation stocks known as small caps. Since then, they have expanded their portfolio offerings to include other strategies that invest in small-cap stocks, such as single-country strategies, regionally diversified solutions, […]
Credit downgrade
The impact on US equity markets, US Treasuries, or the US dollar will likely be minimal. According to Vanguard, one of the world’s largest investment management companies, the recent credit downgrade of the United States is not expected to significantly impact equity markets, US Treasuries, or the US dollar.