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What was in the weekend’s papers? (22/06/2020)

Category: News

FINANCIAL TIMES

“Fine wine investment ages well amid volatile markets”

The Covid-19 crisis is bringing tensions to a head in the market for Bordeaux’s ‘en primeur’ wines.

COMMENT: This is another article about investing in non-standard assets. These include classic cars stickers, toys, and all sorts of collectables. We never advise our clients to bet their financial futures on the future desirability of an action man figure or a bottle of pressed grapes. Investments like this are best left to being a hobby, interesting but merely a diversion from proper investing.

“Why this market is like Donald Trump’s hair”

Stock markets feel unnaturally high and liable to be blown away at any moment.

COMMENT: This article was written by the head of a sizeable investment management company. He is no doubt well aware that offering up a sizeable dose of fear may compel investors to utilise his company’s products. There is always a level of doubt about what the future holds for the markets. Nobody knows precisely what will happen tomorrow let alone the next few months or years. As such it is only natural to worry about what the future may hold. As we cover here the only thing we do know is that over the long term the markets seldom fail to reward those who have invested in them.

THE TIMES

“YouTube guru: ‘Use Covid loans to snap up a property’”

Paul Smith advised people to take out a £50,000 government handout — and not pay it back.

COMMENT: Anyone taking unsolicited advice from a YouTube “guru” may want to think about the recourse they would have if it went wrong. This looks like a very risky, and unethical, strategy.

“Brexit made British stocks look cheap, but don’t overlook our continental rivals”

Investors often stick to their home shores, but picking international stocks has never been easier.

COMMENT: One of the key principles we stick to when investing is spreading money. Global diversification is essential to a portfolio.

“Tougher rules for buy-to-let landlords”

Barclays is to stop giving mortgages to buy-to-let landlords who buy property through their own limited company.

COMMENT: Companies change their target market and what type of business they accept all the time. This is yet another example of that.

THE TELEGRAPH

“Tech, DIY and gambling – should you invest in the FTSE 100’s newest members?”

Four new companies join the FTSE 100 but not all will be worth investing in.

COMMENT: We never specify that someone should limit their investment universe to 100 shares. As such whether a company has entered the FTSE 100 or not is somewhat irrelevant. We also recommend our clients invest in companies via professional fund managers rather than buying and selling them directly.

“The fund managers using Fibonacci and the laws of physics to navigate Covid-19 stock market falls”

These funds have been spared from the worst of recent sell-offs thanks, in part, to the unusual career backgrounds of their managers.

COMMENT: Good fund management is often best when it is boring. Good management can be much more about avoiding mistakes than finding that needle in the haystack. This piece tries to talk up a couple of funds which have done well recently. Its not long since a certain Mr Woodford was featuring in the papers all the time. First as the greatest thing since sliced bread and then as a failure.

THE GUARDIAN / OBSERVER

“UK reports rise in over-50s struggling to pay for necessities”

Surge in universal credit claims highlights precarious financial situation of demographic.

COMMENT: This shows how the first step in building a plan, at any age, is to make sure you have enough over the short term to ride out any financial shocks. Having enough cash to cover your costs for a long period, having appropriate insurance in place. These all form the foundation of a good financial plan.

If you want to know more about how anything we covered could affect your planning, please feel free to book in a free no-obligation chat here or get in touch.

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