The Federal Reserve’s (Fed’s) cautious stance on further interest rate cuts, as expressed in their statement about “a lack of further progress” on inflation, that was made on Wednesday, marked a shift in market expectations in recent weeks, by David Johnson   At the start of 2024, investors had been optimistic about a strong year, anticipating a series of rate cuts by Western central banks as inflation continued to decline. However, reality proved less favourable.   Stubborn inflation   Against expectations, in February, US CPI inflation rose slightly to 3.2%. At the sam ..read more

  As a member of “Gen Z” working in Sustainable Finance or Environmental, Social, Governance (ESG), whenever I respond to questions of “What do you do for a living?” particularly from those of an older generation, I am often met with the immediate charge of “wokeness.” By Benjamin Stone   The assumption being that because I work with investors and companies to support the integration of ESG factors within both their investment and business strategy, I am somehow part of a broader attempt to force certain political, almost always left-wing, values upon them. Truthfully, this “ESG-Wok ..read more

  ‘But when it comes down to fooling you  Now honey that’s quite a different subject’    The fiascos continue to mount-up. Only days after finally passing legislation that allow the government to offshore immigrants to Rwanda comes the news that we would, if only we knew where to find them!  Of the 5,700 it has identified to put on the first flights, only 2,145, 38%, ‘continue to report to the Home Office and can be located for detention‘.  The shadow immigration minister, Stephen Kinnock, said the statistics exposed ‘the total lack of grip the Conservatives have ..read more

  Japan’s decade-long corporate governance push is finally leading to significant improvements to underlying Japanese businesses…by Josef Licsauer   The recent momentum in the Japanese stock market is capturing the attention of global equity investors. After more than three decades of waiting for its time in the sun, it’s risen with a vengeance, with the Nikkei 225 surpassing its 1989 highs and reaching over 40,000 points in February 2024. The revival of Japan’s once-moribund stock market has led to it being a consensus pick among many global investors, having been an under-allocate ..read more

  Lord Forsyth of Drumlean, chair of the Financial Services Regulation Committee, has written to Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), pushing for a resolution to the cost disclosure issue that has been plaguing the investment companies sector, writes James Carthew   This is a very welcome intervention, we think, and hopefully it will add to the very considerable pressure on the FCA to sort out this problem. We have attached the letter here   The post Cost disclosures – House of Lords writes to FCA appeared first on DIY Investor ..read more

  A significant fall in UK inflation is in prospect, writes Tim Congdon   In the two months to May 2023 the consumer price index rose by 1.9%. It is very improbable that the CPI will increase by as much as that in the two months to May 2024, even though – for example – oil prices have advanced quite briskly in recent weeks. Suppose that the CPI goes up by 1.0% in the two months to May 2024, which is very much on the pessimistic side of expectations. Then the annual rate of change will drop between March and May by (([1.019/1.01] – 1) x 100)%, which is roughly 0.9%. The annual rate o ..read more

  Saltydog crunches the numbers to see which UK funds are at the top of the performance charts as the positive run for the FTSE 100 index continues.   This year, several stock markets around the world have already set new all-time highs. We have seen it in America, continental Europe, and even the Japanese Nikkei 225 beat its previous record, which was set 34 years ago. Last week, the FTSE 100 joined the club, closing above 8,100 for the first time.   Stock market indices Annual returns 2024 Index 2021 2022 2023 Jan Feb March 1 to 7 April Year-to-date FTSE 100 ..read more

  Apple delivers top tier results with strong global Q1 earnings   Josh Gilbert, analyst at investment platform eToro, says: “Apple showed today why it is magnificent, beating revenue and profit expectations while hiking its dividend and announcing an eyewatering $110 billion share buyback. Many investors had begun to question if Apple still has what it takes to deliver the top growth they have become accustomed to over the years, but Tim Cook turned on the charm today and offered relief to investors.  “Sales in China were better than feared, still falling by 8%, but less than ..read more

  What is Seller Financing?   Imagine you are buying your next property, but instead of securing a traditional mortgage from a bank, the seller gives you a loan directly. This is seller financing. The process is (technically) straightforward. The property seller acts as the lender, where the buyer makes payments to them instead of a bank. This method opens up new opportunities for investors looking to scale their real estate portfolio without the hurdles of conventional lending.   Benefits of Owner Financing for Investors   Seller financing has many benefits for the invest ..read more

  Almost nine in ten (87%) UK retail investors believe they lack sufficient levels of financial knowledge to better manage their portfolios, according to recent research by Charles Schwab 81% of UK retail investors believe it is increasingly important to seek expert advice on their investment strategies; 58% are consulting professional financial advisers (up 7% YOY) and 52% are referring to financial press (up 7% YOY) to make investment decisions Celebrity and social media-based finance specialists are declining as a source of influence on investments, particularly amongst younger gener ..read more