3 September 2019
How long should I hold a fund for?One of the simplest questions faced by an investor is also one of the most important; how long should you hold an investment for?
An oft-cited statistic about stock markets is that they deliver, on average, returns of around 7-8%. This isn’t guaranteed, of course, since the future is unknowable by anyone, but it’s what history has told us we should...
3 September 2019
Stomach ache for Restaurant Group investors, and Ferguson seemingly bows to activist pressure“There is only one thing on investors’ minds today: the sinking pound. A drop in sterling below $1.20 for the first time since 2017 weighs on the UK-focused FTSE 250 index and drags it down 0.1% to 14,463. It is also bad news for UK domestic FTSE 100 stocks including the housebuilders, supermarkets and various banks,” says Russ Mould, Investment...
30 August 2019
Investors flock to miners and utility stocks, and Shoe Zone tumbles on profit warning“Investors continue to focus like hawks on any news relating to the US/China trade war, hoping for a resolution. Therefore comment from China’s Foreign Ministry that the two countries continue to engage in talks has given some optimism to markets, with the FTSE 100 up 0.4% to 7,210 and European stocks also moving forward,” says Russ Mould...
29 August 2019
Micro Focus back in the doghouse and Amigo’s mounting problems“It’s yet another bad day for the pound, continuing yesterday’s poor session triggered by the parliament suspension and fears over a Brexit no-deal.
“The pound fell another 0.17% against the dollar to trade at $1.2191, and slipped 0.15% against the euro to €1.1009. Sterling weakness is bad for the UK-focused FTSE 250 index which fell 0.3% to 19,151...
28 August 2019
Marks & Spencer ready to check-out of FTSE 100 in latest index reshuffleWe have already had four changes to the FTSE 100’s make-up in 2019, and further changes look likely at the reshuffle that will take place based on stock market valuations at the close on Tuesday 3 September. Marks & Spencer’s modest £3.5 billion stock market valuation means it looks doomed to automatic relegation and that would end the retailer’s...
28 August 2019
Oil prices back at $60 and Thomas Cook shareholders fear for the worst Markets“A larger than expected decline in US oil stockpiles helped to drive a 0.9% rise in Brent Crude prices to approximately $60 per barrel and lifted WTI Crude prices by 1.2% to $55.5 per barrel. That was good news for shares in FTSE 100 giant BP (up 1.2%, also helped by a $5.6 billion deal to exit its Alaskan operations) but oddly not Royal...
27 August 2019
Pace of dividend growth suggest Bunzl lacks confidence“Investors weren’t in a positive mood on Tuesday despite remarks from Donald Trump that the US and China would ‘very shortly’ resume trade talks. European equities were down across the board including a 0.4% decline in the FTSE 100.
“A recent rare moment of strength in the pound served to weigh on UK stocks that earn in US dollars, explaining why...
23 August 2019
Potential bid war for Entertainment One and Eddie Stobart stuck on the hard shoulder“There was signs of new life in the FTSE 100 ahead of the bank holiday weekend with the blue chip index jumping 0.6% to 7,175. A strong US dollar versus the pound benefited several companies which do a lot of business in the former currency including construction giant CRH and distribution group Bunzl,” says Russ Mould, Investment Director at AJ...
22 August 2019
NMC Health soars on stake bid chatter and CRH constructs strong first half“Financial and consumer goods companies including Prudential weighed on the FTSE 100 on Thursday, sending the index down 0.5% to 7,171. Among these stocks were Reckitt Benckiser and Schroders which fell as they traded without the rights to their latest dividend. The same applied to Imperial Brands and London Stock Exchange s," says Russ Mould...
20 August 2019
BHP confident despite economic gloom and Persimmon takes a more thorough path“A pick-up in corporate news stimulated interest in the markets including new sales data driving shares in UK supermarkets. Investors also seemed more upbeat in various parts of the world amid hopes of more stimulus to support economies.
“The FTSE 100 advanced nearly 0.3% to 7,208 and other markets in Europe were also in a positive mood. Asian...
19 August 2019
What do the BlackRock fee cuts mean for the Favourite funds list?BlackRock is the largest asset manager in the world, with around $7tn in assets under management. The majority of this is in passive (also known as ‘tracker) funds – through its iShares brand.
In a passive fund, the manager aims to perform in line with an index – such as the FTSE 100 in the UK or S&P 500 in the US – by purchasing all the shares in...
16 August 2019
Quiet day enlivened by LSE trading problems, Burford looks to restore market confidence“Investors would have been yearning for a quiet Friday after a week of turmoil for the markets driven by recession fears. “And it looked like just such a peaceful interlude was on the cards until technical issues at the London Stock Exchange delayed the start of trading in FTSE 350 stocks, delaying an expected rebound for the index,” says AJ Bell...
15 August 2019
Another difficult August for the FTSE, and GVC raises guidance“In recent years August has often felt like a difficult month for global stock markets and 2019 is no exception as we reach the halfway point.
“A string of negative news and worrying signals from the bond markets have got investors spooked as the FTSE 100 trades at multi-month lows,” says AJ Bell Investment Director Russ Mould.
GVC“The owner of...
14 August 2019
Cash is king for Balfour Beatty and Admiral results saluted“Despite a strong showing in Asia and the US overnight the FTSE 100 surrendered gains made at the bell to flatline.
“Any optimism over the Trump administration’s decision to delay tariffs on Chinese goods apparently proving pretty short lived,” says AJ Bell Investment Director Russ Mould.
Balfour Beatty“Investors in embattled construction firm...
13 August 2019
FTSE spared heavy losses for now and TUI guidance maintained“Given the turmoil in global markets, from a range of issues spanning Brexit to the US-China trade war and Italian political instability, the FTSE 100 appears to have gotten off pretty lightly on Tuesday morning.
“Early on the index is trading just a handful of points lower although the US open will be eyed nervously for the cue it might provide...
12 August 2019
How to buy and sell sharesFollow these steps to learn how to buy and sell shares on the AJ Bell website.
12 August 2019
Falling pound boosts FTSE and Tullow makes "substantial" oil discovery“Sterling weakness linked to economic and political uncertainty helped give the export-driven FTSE 100 a lift on Monday.
“The index also took its cue from a strong showing in Asia overnight. Travel operator Thomas Cook was a notable faller as investors prepared for further pain thanks to a further £150 million share-based fundraise,” says AJ Bell...
9 August 2019
FTSE set for subdued end to the week, William Hill rolls the dice on US expansion“Fears of renewed turmoil in Italy helped push the FTSE 100 on to the back foot in early trading on Friday, surrendering some of Thursday’s gains. “Sterling was also in the red ahead of UK GDP data and one company counting the cost of the weak currency was travel outfit OnTheBeach which warned on profit thanks to the increase in prices necessitated...
8 August 2019
Mixed report for Aviva CEO and Cineworld holding out for its heroes“The FTSE 100 looked set for a seesaw session on Thursday, enjoying solid gains early on before these tailed off to leave the index sitting below the 7,200 mark. We are heading into the summer doldrums when a lack of liquidity in the market can result in increased volatility,” says AJ Bell Investment Director Russ Mould.
Aviva“If the first set of...
7 August 2019
Investors give Flutter another spin after pleasing interims“Sailors always believe that it is tempting fate to change the name of a ship as it can bring bad luck, but so far Flutter Entertainment seems to revelling in its change of moniker from Paddy Power Betfair,” says Russ Mould, AJ Bell Investment Director.
“The shares are up by 12% since the switch in May, partly due to unsubstantiated chatter about...
7 August 2019
Glencore hit by falling metals prices and outflows continue at Standard Life Aberdeen“A stabilisation in China’s yuan currency has helped to stop the rot for global markets and the FTSE 100 manages to claw back a bit of ground to trade above the 7,200 mark on Wednesday.
“At the moment trade talks between the US and China are still scheduled for September and these, along with a meeting of the US Federal Reserve, are likely to be...
6 August 2019
Three reasons why financial markets do not want to see tariffsWhen Donald Trump was running for President, financial markets were wary of him, not least because of his calls for tariffs and protectionist policies. For a while it looked like that had all been forgotten but the President’s latest threats about more tariffs from 1 September is prompting a rally in bonds and gold and a fall in equity markets to...
6 August 2019
Investors check out of InterContinental and Sirius pulls bond issue“The continuing war of words between Washington and Beijing did little to reassure investors although at least this morning’s damage was less significant than that seen earlier this month,” says AJ Bell Investment Director Russ Mould.
“Only a handful of trading days into August and the FTSE 100 has fallen around 5% and there appears little on the...
5 August 2019
HSBC’s Flint becomes fourteenth FTSE 100 boss to announce departure in 2019At least HSBC’s share price has been courteous enough not to go up on the departure of its CEO but this is likely to be of little particular comfort to John Flint, who becomes the fourteenth FTSE 100 boss to leave or announce plans to leave their post (with four of the group set to depart in 2020).
What may grate with Mr Flint is that he had the...
5 August 2019
Shock departure at HSBC and BBA Aviation grounded“The markets are firmly in risk off mode, with precious metals miner Fresnillo the only FTSE 100 stock in positive territory as demand surges for traditional safe havens like silver or gold,” says AJ Bell Investment Director Russ Mould.
“The rest of the mining sector is firmly on the back foot amid mounting trade war concerns and a devaluation of...