End of year investment review

Should you strip emotion out of your investment decisions?

As we approach the end of 2019 many people will be sitting down to review their portfolio performance and instigating plans for 2020. While sometimes a review of your investment portfolio can be an “eye-opener” it is something which needs to be done on a regular basis.

Relative performance

It is important that you find an index which is relative to your investment criteria so that you can compare and contrast performance of your portfolio. For example, there is no point in comparing a portfolio of technology shares against the general Dow Jones index. As and when your portfolio structure changes it may be sensible to switch to different indexes. Whatever happens, it is imperative that you are able to compare and contrast your performance on a relative basis. Continue reading “End of year investment review”

Why delivery charges will become the norm for e-commerce

Why delivery charges will become the norm for e-commerce

In recent times we have seen surveys suggesting that consumers are happy to buy their products online may be abusing the free delivery system. It is common knowledge that many consumers will buy one dress or one shoe in different sizes, returning the items which do not fit. This has created something of a problem for the e-commerce market and the cost of delivery. Even though many consumers will search for the “free delivery” option, delivery charges will become the norm in due course. Why?

Amazon changing e-commerce

Amazon offers a variety of different delivery options from free delivery for some items to the Amazon Prime membership alternative. The idea is simple, hook first-time buyers and returning consumers and ensure they come back to Amazon time and time again. This is a very interesting and we now know lucrative method of encouraging customer loyalty – which will eventually become the norm. Continue reading “Why delivery charges will become the norm for e-commerce”

Are there viable options other than investing on the stock market?

Are there viable options other than investing on the stock market?

The reality is there is a whole array of different investment opportunities other than stock market investments. However, stock market investment is vital to long-term investment strategies such as pension plans and the like. There are a number of issues to consider when looking at alternatives.

Liquidity

The vast majority of stock market shares have a certain degree of liquidity which can vary significantly. However, there is liquidity. If you look at investments such as physical property then yes, there will be buyers but converting property asset into cash in a short space of time can be challenging. Indeed, some investors looking to cash in their property assets in double quick time may need to offer some kind of financial incentive to buyers. Continue reading “Are there viable options other than investing on the stock market?”

Can older companies/sectors compete with new technology?

Can older companies/sectors compete with new technology?

There is a growing feeling that many older established companies/sectors are struggling to compete with new technology. If you look at the likes of Dell, with recent figures disappointing the market, this is a prime example. The company appears to have a sound asset base but maximising asset value has proven difficult if not impossible. If you also take a look at the high street, e-commerce companies have slashed profit margins and put many established retailers in serious danger of going out of business.

It’s all down to the cost base

When you clear away the emotive arguments, surprise and concern, it all comes down to pure cost against sales. New companies today are able to take advantage of the new online era, slashing their base costs, and placing huge pressure on established companies. If we look at the retail sector this is a perfect example; for many companies there is no need to have a physical shop thereby reducing significant base costs. It is not just the cost/rent of the property but staff and growing running costs going forward which face many traditional retailers. For many new e-commerce businesses those issues are not an issue! Continue reading “Can older companies/sectors compete with new technology?”

Markets unconcerned about Trump impeachment hearing

Is Donald Trump right to be bullish about US economy?

If the opposition parties in the UK rallied together to force Boris Johnson from office it is likely the UK stock market would come under pressure. Markets like guarantees, they like certainty and any political shenanigans can undo all of this. So, why are US stock markets unconcerned about the ongoing impeachment hearing involving their President Donald Trump?

Donald Trump has faults but…..

Whatever you think of Donald Trump there is no doubt that he has done exactly what he promised, America must come first. He has withdrawn funding from many international organisations, announced trade tariffs and is playing hardball with many of America’s trading partners. Whether you like his personal persona or not there is no doubt that he is putting America first and the general public/investors seem to appreciate this. Continue reading “Markets unconcerned about Trump impeachment hearing”

Technology shares are a hedge for the future

Technology shares are a hedge for the future

Traditional investors look at the technology sector and shake their head with disbelief and dismay in equal measures. Many of these large technology companies are valued at billions of dollars yet they are unlikely to make a profit for many years to come. Indeed, many will never make a profit and fall by the wayside as competition intensifies. So, is there really a place for technology shares in the portfolio of a passive investor?

A hedge for the future

The key to successful investment is to gain exposure to sectors in particular companies which are doing well today and will do well tomorrow. There are also many companies which are valued on “hope value” today but may well create a massive return going forward. In effect, technology shares which are unprofitable today offer a hedge for the future. If you find a good one, it may well be a game changer for your investment portfolio! Continue reading “Technology shares are a hedge for the future”

Which sectors have been disrupted by new technology?

Why delivery charges will become the norm for e-commerce

There is no doubt that the Internet has changed the way we live and the way businesses operate. The ability to communicate with people all across the globe in a split second has change the world we live in. However, from an investment point of view, which sectors have been disrupted by new technology?

When we say which sectors have been disrupted by new technology perhaps we should say which ones have been most disrupted? Is there really any area of business which has not been heavily impacted by the Internet? Continue reading “Which sectors have been disrupted by new technology?”

Learning to hold your investment nerve

Learning to hold your investment nerve

The more often you buy and sell shares the more chance your investment nerve will be challenged and your emotions often brought into the frame. History shows us that the most successful investors of all time are those who can hold their nerve, take emotion out of the situation and look at cold hard facts. So, how can you learn to hold your investment nerve in challenging times?

Focus on the fundamentals

You may see wild swings in share prices as a consequence of market conditions, sector conditions or perhaps there is something going on with a particular company. What often start out as “small whispers” can very quickly grow arms and legs and lead to a tanking for a company share price. On the plus side, markets may overreact on the upside and the downside but in the end they will find a balance. Remember, the level of the share price is made up of information in the public domain and that still private. Continue reading “Learning to hold your investment nerve”

Facebook adds new security features ahead of 2020 US election

Technology shares are a hedge for the future

In what many believe is a case of “locking the stable door after the horse has bolted” Facebook has today announced a raft of new security features ahead of the 2020 US presidential elections. Those who follow Facebook will be well aware that alleged middling by Russian parties in the 2016 US presidential election may well have allowed Donald Trump to claim victory. Whether or not this is true, there is no doubt that foreign bodies have been attempting to influence voters in the US, and even the UK, ahead of crucial elections.

New safety features

While we await further details, Facebook has today confirmed that postings related to the US presidential elections, as one example, would be more transparent. This comes after the company announced that a number of Russian and Iranian based Facebook networks had been taken down as a consequence of “coordinated unauthentic behaviour”. The company, a champion of freedom of speech, was very quick to point out that these networks were taken down as a consequence of their behaviour not their content. Continue reading “Facebook adds new security features ahead of 2020 US election”

Why high yielding stocks offer support

Why constant stock-market gambles never pay off

In a perfect world we would all like to buy a stock today, sell it tomorrow and bank a huge profit. The reality is that there are significant risks when looking to buy and sell stocks in the short term. As a consequence, it may well be worthwhile considering high yielding stocks which tend to have a significant degree of support already.

High yielding stocks and cash flow

Even though there are some individuals who are able to buy and sell stocks on a short-term basis and bank a significant profit, this is not easy. If you buy a stock at the wrong time then you may be forced to take a loss or hold the shares until they recover. If you bank a loss, this reduces your investment pot, if you hold until the shares hopefully recover, then you are committed and your trading funds have been depleted (at least in the short term). Continue reading “Why high yielding stocks offer support”