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What was in the money sections of the weekend’s papers? (12/07/2021)

Category: News

UK advertising watchdog to crack down on misleading crypto marketing

The Advertising Standards Authority has informed the Financial Times it plans to pull misleading crypto advertisements.

According to the agency, crypto is on a ‘red alert’ in financial advertising. Customers have usually been the ones to highlight potentially damaging adverts. However, the Advertising Standards Agency wants to boost its ability to scan for dubious marketing.

It also wants to take down influencers who are encouraging people to invest in cryptocurrency.

This follows on from Tiktok banning the promotion of cryptocurrencies. Google has also banned financial promotions from companies that are not registered with the FCA.

All of this is a good move and hopefully prevent some from having bad investment experiences.

Ten years of Vanguard’s LifeStrategy: How will the popular funds fare in the recovery and should investors consider active alternatives?

The Daily Mail worries about a new economic landscape. It highlights the threat of inflation and a potential new regime of economic policy. It does this to look at potential replacements for Vanguard’s passive LifeStrategy range, which has performed well over the last decade.

The five funds, worth £29bn, have been “knocked” by the recent bond sell-off. This has led some to tout the end of a “balanced” portfolio of equities and bonds.

“Although the LifeStrategy range has an excellent ten-year performance record,” says AJ Bell’s Laith Khalaf, “it’s fair to point out that all of that period has been characterised by loose monetary policy and a buoyant bond market.”

One would remark that nobody knows what will happen over the next few years in the markets and beyond. The LifeStrategy funds incorporate many of the key drivers behind our own investment process. The main one is to be diversified and not try to outguess the market. This article tries to do the opposite. They may guess right but if they get it wrong will their retirements be on the line?

NS&I green savings bonds ‘doomed to fail’

The Telegraph cautions investors that the National Savings and Investments’ (NS&I) green bonds will not offer return-seeking savers salvation.

The company plans to launch a three-year fixed-rate bond after the Treasury laid out plans to boost investment in sustainable enterprises. However, experts believe it will not be able to beat current markets.

Gemma Woodward from Quilter Cheviot argues that nobody will put money in them if the rate is too low. However, she adds: “Set the rate too high and it will be poor value for money and taxpayers.”

NS&I occupies a privileged status in people’s minds when looking for a place to put cash. This is because it is backed by the Government no matter how much you save with them. Let us hope that they do not rely on this too much when deciding what rate to offer.

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