Blog

Chelsea's blogs are written by our research team and, as well as being published here, are all published on other third party investment websites. They are meant for your information and do not constitute investment advice.

The seventh resource: the investment power of recycling

March 18th marks Global Recycling Day. The annual event was created six years ago to recognise the crucial role that recycling plays in preserving our natural resources and our planet’s future. Its focus is to emphasise the importance of recycling to world leaders and ask people across the world to think about preserving our resources.

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Is holding cash in your portfolio costing you?

Please remember that the value of investments will fluctuate and returns may be less than the amount originally invested. Tax treatment depends on your individual circumstances and tax rules can change. Chelsea does not offer advice and, if you are unsure of anything please contact an expert adviser.

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Navigating the turbulence of renewable energy

It has been a bad couple of weeks recently for the renewable energy agenda. The government is planning to scrap its boiler tax, while Labour is rowing back on its commitment to green energy infrastructure. The world’s largest wind company Ørsted announced it was suspending its dividend and cutting jobs, while SSE said its renewable output was around 15% below expectations*.

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Emerging market strengths beyond a slowing China

‘Under-owned, underestimated and unloved’ is how investment trust managers described emerging markets when speaking to the Association of Investment Companies at the start of 2024, which reflects both their pessimism and optimism as a new year begins.

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Do the best things come in small packages?

Over the last two years, bigger has undoubtedly been better for investors. Larger companies have outpaced their smaller rivals in the US, UK and Europe, as investors have gravitated to safety and predictability. However, with the interest rate environment shifting, economic growth stabilising and market sentiment turning, small caps have started to revive. Is it time to rethink?

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Value vs growth stocks: in 2024 you need both

Investors have witnessed extreme rotations in the leading investment style – value or growth – over the past few years. In 2024 the best bet looks likely to be not one end of the spectrum or the other, but to hold a diverse middle ground.

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Five financial resolutions for 2024

It’s that time again when we put together our new year’s resolutions. Alongside resolving to eat healthily, hit the gym or take up a new hobby, adding some financial pledges to your list could do wonders for your well-being.

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Is now a good time to back infrastructure?

Infrastructure has become a significant investment theme, as governments around the world recognise its importance in driving economic growth. That has seen billions of pounds spent on everything from building roads, schools and hospitals to enabling technology through digital infrastructure such as data centres.

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The power of patience for investors

As the year comes to a close, investors would be well-advised to remember that a loss is only a loss if you crystallise it by selling out. Those who have held their nerve in 2023 have generally fared better than those who have been blown about by market noise.

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The companies benefiting from our Christmas shopping

The countdown to Christmas has officially started. There’s plenty of holiday cheer among shoppers this year, who will spend an estimated £24.1bn online between 1 November and 31 December*. Consumer enthusiasm is, in part, fuelled by the increasing use of flexible payment methods, while e-commerce is expected to grow by nearly 3%* over the period.

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Five steps to review your investment portfolio

It’s nearly time to welcome 2024 – and the perfect opportunity to review your investment portfolio to ensure it still meets your needs. Here is our guide to revisiting past decisions, looking at the balance of your portfolio, and ensuring you’re on track to meet your financial objectives.

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Supercharging your portfolios through the energy transition

It has been a tough year for the energy transition theme. In spite of considerable progress on the adoption of renewables – including government backing for large-scale renewable infrastructure projects and ongoing recognition of the urgency of climate action - investment performance has been weak.

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Three ways of taking advantage of unloved UK equities

The cost of living crisis, the looming threat of recession, and geopolitical problems have dampened investor expectations over recent months. But there are still many innovative UK-listed companies that have continued to deliver bumper profits, despite the challenging backdrop.

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Will the ugly ducklings of 2023 become the swans of 2024?

The adjustment to higher interest rates has been painful, just ask anyone who has had to remortgage in 2023. However, increasingly it appears that those rate rises are drawing to a close, with central bankers satisfied that they have done enough to calm inflation. For those sectors hit hard by rising rates, there may be light at the end of the tunnel. It could be time for investors to look again at a few of these unloved areas of the market.

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Infrastructure funds follow the money

Every four years, the American Society of Civil Engineers assesses America’s infrastructure and assigns grades based on its condition. In its most recent report card from 2021, it gave America a score of a C minus* - disappointingly low and pointing to clear despair in the country’s infrastructure.

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How to make the most of ‘kangaroo’ markets

It’s been a year of ups and downs for the UK stock market. Having started the year at around 4,100 points, it rose to 4,375 in February, only to fall to 4,000 in March. By April it was back up to 4,295, before falling to 3,957 in July. It then rose again to 4,198 before falling to 3,953 by the end of August. Today it is back almost where it started: 4,072*.

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Which European sectors are attracting the most investment?

Europe is packed full of world class companies – but where are the fund managers focused on this region finding the most attractive opportunities? We examined a number of portfolios in the Europe ex-UK sector to identify which industries boasted the largest share of assets under management.

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China’s fireworks fizzle out

When it finally put an end to its zero-Covid policy and reopened its doors to the world, many investors expected both the Chinese economy and its stock market to rebound quickly. And, having started 2023 with a bang, it seemed they were right.

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Why bonds are back in business

Things have changed dramatically for investors in the past 18 months, as rising interest rates amid an inflationary backdrop continue to spook markets. Indeed, the UK’s stubbornly high inflation figures means we are now expecting interest rates of almost 6 per cent in the UK – something that anyone under the age of 30 will not have experienced during their working careers.

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Investment solutions to environmental concerns

Protestors have targeted various sporting events in recent weeks as part of their efforts to focus our attention on environmental concerns. Wimbledon, the second Ashes cricket test at Lord’s, the Premiership Rugby Final, the Grand National and the World Snooker Championships have all been disrupted.

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The role of VCTs in supporting innovative start-ups and driving economic growth

Venture Capital Trusts (VCTs) are vital sources of funding for early-stage British businesses in need of growth capital. These unique investment vehicles channel the risk-bearing potential of investors into fledgling companies. By bridging the gap between risk-averse capital and risk-intensive innovation, their contribution extends beyond individual business success to fostering broader economic development.

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A five minute guide to REITs

Property has long been regarded as a useful portfolio diversifier – and an attractive way to access such assets is via Real Estate Investment Trusts (REITs). These stock market listed vehicles, which are subject to stringent regulations, give investors exposure to income-producing property assets around the world.

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How the experts build an investment portfolio

Building your own investment portfolio can be a daunting task. It involves choosing the right mix of assets that align with your investment goals, risk tolerance, and time horizon. This requires a considerable amount of research, analysis, and decision-making.

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Which companies are paying the highest dividends?

Global dividends are still expected to increase over the coming year – despite ongoing economic uncertainty and geopolitical risks. The latest Janus Henderson Global Dividend Index is forecasting payments will rise 2.3% on a headline basis to $1.60trn in 2023*. And even though this growth rate is less than last year’s 8.4% hike to a record $1.56trn*, the news will still come as a pleasant surprise to many investors.

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How to invest in healthcare

Healthcare companies are among the most innovative businesses on the planet and have the potential to be lucrative investments. They operate in multi-billion dollar industries that should benefit from increased demand for products and services as people are living longer.

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Last chance to invest in a VCT this tax year

Venture Capital Trusts (VCTs) have seen their popularity soar in recent years, with the amount invested rising more than 2.5x over the past decade*. There is now more than £6.3bn invested in the sector, which saw record fund raising during the 2021/2022 tax year**.

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Time to go global this ISA season?

Investing globally has become an increasingly popular way for investors to diversify their portfolios and potentially increase returns. It’s a way to tap into the growth potential of markets beyond the home country, potentially reducing risk and providing exposure to wider structural trends.

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Five core funds for your ISA

Stocks and Shares ISAs give investors a great opportunity to embrace a variety of exciting asset classes and innovative funds. However, a crucial component is having a core holding in your portfolio that will provide the bulk of your returns over the coming years. What are the qualities of such funds? And how can you pick the right one for your needs?

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ISA ideas across the asset classes

The ‘Stocks and Shares ISA’ is a bit of a misnomer because there are so many different asset classes you can invest in within the wrapper – it’s why we’ve always referred to it as an ‘Investment ISA’ instead.

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How the ISA has evolved and ideas for this ISA season

It’s hard to believe, but individual savings accounts (ISAs) have been with us for almost a quarter of a century since arriving in 1999. These tax-efficient vehicles, which have revolutionised how millions of people save and invest, have undergone many changes over the years. We also have a number of ‘ISA millionaires’, which demonstrates the value of long-term investing and compounding.

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How absolute return funds are aiming to make money

Absolute return funds aim to make money whatever happens – and such a pledge will sound particularly seductive when times are financially tough. Sky high inflation, soaring interest rates, and looming fears of a recession have certainly made it a nervous start to the year for investors.

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The long-term outlook for India’s economy

India has certainly come a long way in recent years – and its progress has made it an increasingly attractive option for investors with longer-term goals. Last year, the India stock market was one of the few to post positive returns. While 2023 has so far proved more challenging, the long term outlook is encouraging.

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Will emerging markets reward in 2023?

Emerging markets have excited investors for years – their potential for better-than-expected returns is pretty hard to beat. Unfortunately, the possibility of strong returns can go hand-in-hand with increased volatility, especially in comparison with more developed markets.

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Is it time to rebalance your portfolio?

It’s that wonderful time of year again when everyone makes well-intentioned resolutions to get fit, keep in better contact with friends, and start new hobbies. However, the festive period is also the ideal opportunity to shake up your finances, cut your debts down to size, and revisit your investment decisions.

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Four ‘gift card funds’ for the stumped investor

While it is commonly known as the season to be jolly, it doesn’t mean that Christmas is without its stresses. Not only do we have cards to write, in-laws to entertain and nativities to watch, but the prospect of buying the perfect present is enough to leave many in a cold sweat.

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Investment bargains this Black Friday

Shopaholics have had Friday 25th November etched onto their calendars for months as it’s the annual Black Friday buying frenzy. This is the date retailers slash their prices dramatically to lure shoppers into parting with their cash ahead of the festive season.

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Why equities are still better than cash

There’s been good news and bad for savers in recent weeks. The positive is that interest rates on many bank and building society accounts are on the rise. You can now get 2.5% on some easy access accounts – the highest level for a decade – and even more if you agree to lock your money away for longer*.

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China: where the politics are too stable?

China’s ruling party hosted its 20th congress in Beijing’s magnificent Great Hall of the People last week. Held every five years, the congress is seen as the most important meeting in the Chinese Communist Party’s (CCP) political cycle.

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Keep calm and carry on investing

2022 has been a tough time to be invested and it has been a very difficult period in which to produce positive returns for investors. Unfortunately, these falls are an inevitable part of investing.

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New Prime Minister, new impetus for UK equities?

After winning a titanic battle with Chancellor Rishi Sunak, Liz Truss has now been appointed Prime Minister. The MP for South West Norfolk clinched 57% of votes from Conservative party members in the battle that has raged since Boris Johnson was forced to resign. But what does this mean for stock markets and investors?

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A three-minute guide to thematic investing

As Capital Group’s Martin Romo pointed out recently: a lot can happen in 10 years, particularly when a period of extreme adversity spurs innovation and behavioural changes to help address some of the era’s biggest problems.

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Why investing responsibly is more popular than ever

Responsible funds have soared in popularity over the last few years as the pressure has increased on companies to help the environment. UK investors have ploughed almost £30bn into such portfolios since the summer of 2020 and this area is still enjoying strong inflows*. Here we look at this growing sector, highlight funds that specialise in these investments, and look at where they are putting their money.

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Five reasons to invest in UK value

For the past decade, there has only really been one show in town for investors - US equities. The S&P 500 has been the best performing equity market among its global peers in six of the past 10 calendar years* and, even when it hasn’t topped the table, it has still managed to produce positive returns of between 6-26%*.

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Three funds for an uncertain market

2022 has been a depressing year so far for many investors, as global equity markets completed the worst first half of a calendar year since the 1970s. With inflation remaining stubbornly high and interest rates continuing to rise, the contagion has spread to even those asset classes that had initially done well - many commodities have reversed their previously strong upward trends in recent weeks.

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Opportunities in infrastructure

It’s an exciting time to invest in global infrastructure. Numerous multi-billion-pound projects are underway across the world – and they’re providing lucrative investment opportunities.

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Can you invest in Asia without backing China?

Following a regulatory crackdown by the Chinese government, that adversely affected companies in sectors such as technology, education and property, 2021 turned into an annus horribilis for anyone investing in the Chinese equity market.

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Do bonds still deserve a place in your portfolio?

Bonds have long been a core part of investors’ portfolios, serving four key roles: capital preservation, providing an income, protecting against inflation and offering diversification away from equities. But are fixed income investments meeting those goals today?

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Time to invest in FAANG 2.0?

When Jim Cramer, host of CNBC’s Mad Money, coined the acronym FANG in 2013, even he may have underestimated the exponential returns Facebook, Amazon, Netflix and Google would produce over the next decade, as the global economy increasingly digitalised.

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Doing it for the kids: five funds for a Junior ISA

When you’re investing money on behalf of your children it’s natural to focus on the future – their future. After all, they have time on their side and any money invested has longer to work, so you can afford to take a bit more risk than you might do with your own savings.

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Four ways to future-proof your ISA portfolio

The incredible advances within technology, medicine and the environment are transforming our lives at an incredible pace. In fact, we are living in such fast-changing times that it can sometimes be difficult to keep up in our everyday lives, let alone making sure our investment portfolios are up to date.

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Five ways to boost your ISA

How do you fancy a taking a slightly more adventurous stance with part of your Individual Savings Account allocation this year? Sometimes, taking some extra risk can pay off in the long run, especially after markets have already fallen significantly as they have of late.

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Last orders for pub investors?

Is it last orders for the UK’s pub industry? I, for one, sincerely hope not. I can’t tell you how nice it was to meet in one with friends last week and celebrate a big (but belated) birthday.

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Investing in the oil majors

When Russia invaded Ukraine last week, global stock markets tumbled. The Euro Stoxx 50 fell 5.08% that morning, while trading on the Moscow Stock Exchange was completely suspended. The FTSE 100 fared slightly better falling around 2.4%, thanks partly to it having a large weighting towards the energy sector – a sector that is benefiting from a jump in oil prices.

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Are things finally looking up for UK equities?

I hate to tempt providence, but have you seen how the UK stock market has been performing lately? While the US, Japan, Asia and Europe are all in negative territory year to date, the FTSE 100 is up. “UK large caps have been starting to outperform in recent weeks,” said *Simon Brazier, manager of Ninety One UK Alpha*.

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Investing in innovative companies

Every few years, someone comes up with a fresh way of tackling an issue. Their solutions are often so straightforward that everyone else wonders why they hadn’t thought of it before. Such ideas can come from anywhere. Some will be driven by regulatory changes; others by general disillusionment with how something operates.

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European inflation and recovery on the continent

While all eyes have been on rising prices in the US and the UK, Eurozone inflation also rose to a record high of 5% last month - well above the European Central Bank’s 2% target. Food and energy prices, as well as supply chain bottlenecks, played their part in lifting it to a level not seen since the single currency was created more than two decades ago.

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US equities and the Biden administration

Joe Biden has certainly had an interesting start to his first year in office after being sworn in as the 46th President of the United States on January 20th last year. Here, we look at President Biden’s 12 months at the helm and assess the US under his leadership.

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Investing in global giants

It can be comforting to invest in the world’s largest companies. Such businesses are usually household names, giants in their respective industries, and pay handsome, regular dividends.

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How to get your investments back into shape

January is the month of the year when we all think about getting back into shape. We exercise more, try to lose some of the weight gained at Christmas, and maybe even start some other good habits that we optimistically put on our list of new year resolutions.

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Christmas Songs Emoji Quiz 

Christmas is all about spending quality time with family - and what better way to pass some time than a twist on Pictionary? Here are ten hints in the form of emojis. All you have to do is guess the Christmas songs. Enjoy!

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Have yourself a merry but sustainable Christmas

The temperature has dropped, and Christmas is officially ‘just round the corner’. But following COP26, I find myself trying striving for a more sustainable Christmas – using less plastic, producing less waste, and doing more recycling.

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Using your wealth to tackle climate change

The 2021 United Nations Climate Change Conference - COP26 – is currently taking place in Glasgow. The renewed focus on tackling climate change is expected to spur people on to call into question how they live, shop, and even invest.

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It truly has been an Indian summer for investments

The Cazoo St Leger Day is back at Doncaster this weekend. The oldest of Britain’s five horse-racing Classics, and the last of the five to be run each year, it marks the end of the summer sporting social calendar… and the day some market timers reinvest.

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A three-minute guide to strategic bond funds

Strategic bond funds have grown in popularity over the past decade. Back in May 2011 there was £21 billion invested in the sector. Today the figure has doubled to £42 billion*, as investors who appreciate the benefits of taking a flexible approach to fixed income have flocked to the sector.

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Investing in the heartbeat of the US economy

Americans celebrated Independence Day at the weekend, with parades, music, BBQs, fireworks and national holiday today. Investors in the US stock market have also had reason to be cheerful: the S&P 500 has returned 346.7%* over the past decade, led in the main by the giant tech stocks.

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Are opportunities emerging in emerging markets?

Emerging market countries account for almost 80% of the world’s population, 60% of global GDP and the majority of its incremental growth*. They also have favourable demographics - younger populations that are likely to be at the forefront of internet-driven transformation within various industries.

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Investing in the UK’s recovery

This summer, the UK is poised for its fastest period of economic growth since the Second World War. As Britain emerges from lockdown it is anticipated consumers will start to spend the money they have saved over the past 12 months or so and economic activity will rebound sharply.

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Five investment themes for the next decade

“Ten years from now I think we will look back on COVID as our generation’s ‘Pearl Harbor moment’ – a period when extreme adversity spurs innovation and behavioural changes to help address some of the era’s biggest problems.

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Six funds that do the decision-making for you

If you are finding it hard to decide where to invest your money this ISA season, you are probably not alone. Decision making can be difficult and fraught with consequences at the best of times, but it appears lockdown has also made our decision-making worse than usual.

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Investing in metals and miners

As the global economy emerges from the pandemic, a greener future awaits. Governments around the world have committed to ‘building back better’, with plans in place to accelerate the adoption of electric vehicles, the transition to cleaner energy and more energy-efficient homes and offices.

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Six specialist options for this year’s ISA

Usually, when we’re talking about a core, we’re discussing apples or a hard workout at the gym. But when it comes to our investments, the core is the base upon which our portfolio is built - those assets and investments that are considered fundamental to generating our long-term positive returns. They will tend to be steady eddies that won’t give us any nasty surprises.

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Six ISA ideas for income investors

With interest rates still close to zero, bond yields low, and dividends having been cut by more than a third in some countries over the past year, income investors are no doubt wondering where to turn as we near the end of the tax year.

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Is there a bubble about to burst?

There’s a lot of bubble talk at the moment. The US stock market is at an all-time high and climbing higher, stocks such as Tesla have been going crazy, there’s been a frenzy of small investors buying stocks based on social media hype on sites such as Reddit, and Bitcoin is close to $40,000 again – up four-fold in a year.

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UK dividends may not recover until 2025

In rather bleak news last week, the latest UK Dividend Monitor from Link Group suggested that UK dividends may not regain previous highs until 2025 at the very earliest. Eight years of growth was wiped off UK dividends in 2020, with two thirds of companies cancelling or cutting their dividends in response to the pandemic lockdowns*.

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Where to find income in 2021

For income investors, finding a decent yield has become harder and harder over the past decade. After the global financial crisis, when interest rates were slashed, cash savings accounts fell from paying over 5% to 0% in many cases. Even the best fixed rate Cash ISAs are paying less than 1% today*.

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The January effect and investing in a new year

The so-called “January effect” is the idea that January is usually a good month for investing. First noted in 1942 by the investment banker, Sidney Wachtel, it wasn’t until the 1970s and 1980s that it really came to prominence, with a raft of academic research papers written attempting to analyse this apparent anomaly and why it may exist.

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The best and worst investments of 2020

As 2020 draws to a close, *Darius McDermott, managing director of Chelsea Financial Services*, takes a look at which funds and sectors are likely to find themselves on Santa’s nice list, and which are well and truly on the naughty list:

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Lessons learned from a crisis

It’s the 19th March 2020. A month ago stock markets had barely noticed the Coronavirus. Now they are in a panic. The world is going into lockdown. The FTSE 100, which had a month earlier been trading at 7,500, is now below 5,000.

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Five funds tackling climate change

After ‘Furnace Friday’ it felt like ‘Melting Monday’ yesterday, as I sat at my desk at home, trying to ignore the heat and get on with some work, whilst thinking longingly of the air-con in our office.

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Bonds: have they performed as expected?

Back in April we asked the question: is now the buying opportunity of the century for bonds? Having spoken to a number of bond fund managers it was clear that the global market sell-off in March had made the asset class look very good value for the first time in many years.

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EU recovery plan: a boost to European stock markets?

Last week, after five days of intense negotiations, EU leaders finally reached a deal on a €750bn recovery package to reconstruct the region’s pandemic-stricken economies. An agreement on the next seven-year budget, which will be worth over €1 trillion, was also reached.

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Why wait? Three reasons to invest today

It’s been a strange and worry start to the year - both in personal and stock market terms. But as lockdown starts to ease and the first children return to school, is now the time to also re-start our investments?

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Sell in May and go away?

At this time of year, we’re usually reminded of the investment adage ‘sell in May and go away, don’t come back til St Leger’s Day.”

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How safe are dividends?

‘Thanks’ to the stock market crash, the FTSE 100 is yielding almost 6% today*. That’s almost 60 times the Bank of England base rate and considerably higher than returns on cash.

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COVID-19 market meltdown: why investors shouldn’t panic

“Don’t Panic!” was the famous phrase of Lance Corporal Jones from the 1970s BBC Comedy ‘Dad’s Army’, set in World War II. The past few weeks have certainly given investors plenty of reasons to panic, as the Coronavirus has spread exponentially, and stock markets - reflecting the likelihood of a significant hit to global economic activity over the coming weeks and months - have seen massive declines.

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Should you invest when stock markets fall?

The events of the past few weeks have given investors plenty of reasons to be fearful. Gone (but not forgotten) are the fears over Brexit and Trade Wars - and instead we have worries about the impact of the Coronavirus, both socially and on the global economic system.

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ISA season 2020: A few alternatives to Woodford

The demise of Woodford Investment Management was one the most surprising and saddest stories of 2019. Neil Woodford and the funds he managed were the bedrock of many investor portfolios for more than three decades. But a prolonged period of underperformance in recent years led to significant outflows and, subsequently, trouble for the fund manager when it came to trading an increasingly large proportion of illiquid stocks in the LF Woodford Equity Income portfolio. The result was a suspension of the fund in June last year and its closure in October.

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World Economic Forum 2020: five responsible investment funds

As recently as ten years ago, the environment didn’t even register in the top risks for discussion at the World Economic Forum. But at Davos last week, climate change and responsible investing dominated discussions. ‘How to save the planet’ was one of the topics and speakers included teenage environmental activist Greta Thunberg and outgoing Bank of England Governor Mark Carney - who is due to take up a new role as UN special envoy for climate action and finance.

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Asia: investing for growth and income

It is almost impossible to talk about Asia today, without mentioning trade wars. And, while some progress has been made, China posses such a threat to America’s dominance on the world stage, that any permanent resolution is unlikely to be found this year, or even next.

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Investment outlook for 2020

Globally, 2020 is likely to be dominated by the US presidential elections – and Trump’s actions, tweets and statements during the campaign. In the UK it will once again be Brexit.

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Funds to be thankful for

I celebrated my first Thanksgiving Day this weekend. Courtesy of an American colleague, I got to sample a Turkey (one of some 45 million that are eaten by Americans on Thanksgiving day alone*), sweet potato and marshmallow mash, cornbread, cinnamon glazed carrots and homemade stuffing… followed by pumpkin pie and apple pie. 

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Festivity Index: stock markets and a Santa Claus rally

Inspired by an Invesco advent calendar we received last week, which suggests the ‘percentage feeling of festivity’ is directly correlated to the daily progression through December to Christmas Day (and some market statistics from Fidelity), we decided to take a quick look at the probability of a Santa Claus rally this year.

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Old hands or new brooms? Investing in different types of company management

Many company CEOs and boards of directors today are exposed to asymmetric profiles: they can achieve psychological and financial greatness if they succeed, but if they fail, their downside is limited with the company’s shareholders, employees and even customers bearing the economic pain. Just look at all the golden parachutes ‘failed’ management has received in recent years.

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The death of the retailer: Five firms bucking the trend

It’s been a tail of doom and gloom on the UK high street for a number of years now. Since 2008 we’ve seen household names like Woolworths, Comet, JJB Sports, Barratts, Blockbuster, BHS, Maplin, Poundland and Toys R Us all become a thing of the past. Thomas Cook looks set to join the list following its recent collapse. Other retailers such as Top Shop owner Arcadia, Monsoon, New Look and Homebase have been forced to seek legal agreements with their landlords to shut stores and slash rent to prevent them becoming insolvent.

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Baillie Gifford sets the bar for active excellence

Active fund management (where fund managers pick which stocks or assets they will invest in) has come under increasing pressure in the past few years, as an historic decade-long bull market has seen stock markets race higher, while passive funds (those that track a stock market index) have had their own race to the bottom in terms of fees.

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Five megatrends for investors to tap into

Finding a good investment idea at the moment is hard – mainly because, in the short-term, there is so much uncertainty. From the possibility of a hard Brexit to a last-minute deal with the EU, a possible general election, signs of a recession… and that's just here in the UK. Internationally we have trade wars, currency wars… the list goes on.

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Good news and bad news for income investors

According to the latest Janus Henderson Global Dividend Index* there is both good news and bad news for income investors. The good news is that the total amount of dividends paid to global shareholders reached a new high during the three months of April to June 2019. The bad news is that rate of increase (1.1%) was the slowest for more than two years.

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Five funds for a Chelsea wedding

It's August and, between holidays, weekends can often be taken up with weddings. This year, Chelsea has had a wedding of its own: last week, Sarah, our colleague, exchanged vows.

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Late cycle investing: offence or defence?

We seem to have been 'late cycle' since 2016, but it has been a long and slow recovery from the global financial crisis and the bull market (now the longest since World War II) has been very unloved – investors have had little faith in it since the word go. So questions about how long it can last have been raised for some time. 

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Plastic-free investing

One million plastic bottles are bought every minute globally. In Europe, a total 58 million tonnes of plastic is used each year – 40% of which is packing. But only 30% is recycled. Indeed, since the invention of plastic, some nine billion tonnes have been produced globally, but almost seven billion has become waste.

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Time to be brave and back British companies?

The UK stock market has been out of favour for some time. As Brexit uncertainty has weighed on the minds of both overseas and domestic investors, our companies and our UK equity funds have been shunned in favour of global options.

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Woodford Equity Income: making the headlines again

Neil Woodford is probably about as close to a household name as you get when it comes to investments. Over more than three decades, he has produced good returns and has a loyal following. However, over the past couple of years, the performance of his flagship Woodford Equity Income fund has been disappointing and, over the past 12 months, the value of the fund has fallen about 18%*.

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Four multi-asset funds to help meet your financial goals

The main reason for investing is to earn sufficient returns to meet your financial goals. These returns will be dictated by a number of factors, but principally by your investment horizon; the risk you are willing to take; your ability to stick to your investment plan; and, finally, your asset allocation.

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How to invest for your own prince or princess

When Prince Harry spoke to the world's press on Monday afternoon, he could not hide his happiness at becoming a father for the first time. Beaming from ear to ear, he described his elation... before his brother then teased him about becoming part of the 'sleep deprivation society that is parenting'.

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Are bonds becoming more attractive?

Investing in bonds is back on the radar, as a spate of central banks across the world have recently brought an end to the era of rising interest rates - before it even truly got started.

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Asia: time to invest again?

Once a very popular region with investors, Asia has fallen somewhat under the radar in recent years. Hindered by worries of China's slowing growth and possible trade wars with the US, sentiment has been hit and, along with it, investment flows into Asian equity funds.

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Guilt-free investing

I'm not sure whether it was the images from last year's Blue Planet 2, or the frightening statistics I see in my research, but I've found myself wanting to make some life changes this year and do 'my bit' to cut down on the waste I generate.

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ISA 2019: Around the world in six equity funds

There are 195 countries in the world. While it only took Phileas Fogg 80 days to make the global trip, in reality it would probably take significantly longer and would depend on how long you'd like to spend in each nation. One day per country would equate to just over six months; one week in each would take 3.7 years; a month would take 16 years – and is possibly a very nice retirement plan.

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ISA 2019: Where are the Chelsea experts investing this year?

With only two weeks to go until the end of the tax year, time is running for those who are yet to make a decision on what to do with their £20,000 ISA allowance. To get some ideas, we asked the experts at Chelsea how they have positioned their ISAs this tax year and where they believe the opportunities for growth may lie.

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Spring clean your investments the Marie Kondo way

20 March 2019 is the first day of spring. It's also just two and a half weeks from the end of this tax year. So what better time than now to spring clean your investments – especially if you have yet to make a choice as to where you will be allocating this year's ISA or pensions allowance?

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Five emerging market growth options for your ISA

A recent report from the International Monetary Fund* says the global economy is set to grow at a modest 3.5% in 2019 (down from 3.7 last year). However, when we look closer, we can see that almost all of this growth is set to come from emerging economies with the financial institution forecasting growth of 4.5% for them compared to only 2% for the developed world.

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Putting your faith in Britain this ISA season

We can only surmise what may happen in the coming weeks, as the UK fast approaches the date we leave the European Union. No one knows exactly what may happen, but as long as you have a diversified portfolio, any big movements one way or another in the pound or the UK stock market should be tempered to a degree.

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Investment outlook 2019: another roller-coaster year?

2018 turned out to be a roller-coaster year. The FTSE 100 began January at a level of 7,648 before falling below 7,000 in March. It then soldiered on, shrugging off everything else that was thrown at it (a little like Theresa May, one might say) and reached an all-time high in May of 7,877. At the time of writing it has fallen to 6,744*.

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Which funds are on the naughty and nice lists this year?

Father Christmas, like the rest of us, is obviously very busy with last minute preparations - a 'Santa Rally' this December is yet to be seen. The adage, which suggests stocks markets generally rise in the build up to Christmas, as people are in better moods and more positive, is either late or not going to happen this year: the FTSE 100 is down 2.89%* since the start of December and the S&P 500 has fallen by 4.56%*. Asset classes around the world have, overall, disappointed in 2018. Of the 37 different sectors for funds only a handful have made any profits: technology & telecommunications (7.5%**), North American and North American Smaller Companies (5.6%** and 3.7**), property (up to 4.3%** depending on whether it's direct or 'other'), UK gilts (1.24%** for those linked to inflation and 0.28%** for those not linked) and cash (0.4%**). Every other sector is in negative territory.

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Six tips to investing late in the stock market cycle

Stock markets move in a series of highs and lows over the years – hopefully with the more of the former than the latter. But trying to time the peaks and troughs is impossible. As I've said many times before, if timing the market was possible, we'd all be very rich and have retired long ago!

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Stock market falls: what caused them and a plan of action

Investors could be forgiven for feeling nervous after the events of the past few weeks. Stock markets across the world nosedived, following a relatively benign summer; the UK’s FTSE 100 index is down 6% so far in October, while the S&P 500 has fallen 5.5% in sterling terms.*

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Brexit: going down to the wire

"UK Labour not ruling out remain in Brexit vote”, “Flights could cease between UK and EU”, “BMW to shut Mini plant for month post-Brexit”, “Carney makes property crash warning”. That's just some of the Brexit headlines from the past couple of weeks. As the pressure increases on Theresa May and her negotiators and the deadline gets ever closer, there are bound to be more.

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Ten years since Lehman: almost every investor has been a winner

It has now been ten years since Lehman's Brothers was allowed to fail. It has been even longer since the UK government had to bail out Northern Rock; an event which led to people queueing on the streets trying to frantically draw out money and worrying whether our economy would ever return to normal.

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US earnings season: strongest in a decade?

We're now in the throes of the US earnings season: when hundreds of publicly-traded companies release their financial statements for the second quarter of the year. Details of their earnings, expenses and net profits are reviewed by fund managers, analysts and investors and portfolios are adjusted on the findings.

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Just how biased are you?

I’m sure we’d all like to think we are balanced and rational investors. In reality, though, as in every walk of life, we are susceptible to behavioural biases that can, at times, influence our decision-making.

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Plastic pollution: investing for a cleaner world

When plastic and financial services are discussed in the same breath, we often presume the conversation is about credit cards. But, as the war on plastics intensifies, pollution, waste management and other environmental and social issues are becoming more integral in the investment discussion.

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Unsung heroes vs celebrated veterans: fund managers we back

When it comes to fund management, experience can be key – especially when it comes to investing throughout a market cycle. However, the number of funds that have been run successfully by the same manager for a decade or more are few and far between because, as in all work places, fund managers move between jobs and companies.

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Five funds that do the decision-making for you

Making a decision can be difficult and fraught with consequences: which school to apply to for your children, where to go on holiday, which energy provider to switch to... Sometimes the difficulty is down to simply having too many options; sometimes there is no obvious answer and the pros and cons of each option balance each other out.

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ISAs: the investor's no-brainer

It's not often the tax man gives us money – or at least doesn't take it – and one of the most generous allowances we receive is that of the ISA. Here are four reasons why we think making the most of this tax-wrapper is a no-brainer:

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Four types of income for your ISA

If you're looking for some ideas on how to generate attractive level of income from your investments, the good news is that there is plenty of choice: from UK dividend paying companies right through to emerging market governments bonds, there is bound to be a fund out there that fits the bill. To make life easier, we've identified four funds which, between them, offer a variety of different income streams.

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Where the experts are investing this ISA season

Sometimes it can be hard to decide where to invest an ISA allowance, particularly if time is running out and the end of the tax year is fast approaching. To get some ideas, we asked the experts at Chelsea how they have positioned their ISAs this tax year and where they are seeing the best opportunities.

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Helping you avoid costly tax-year end mistakes

Leaving things to the last minute is not unusual. Whether it is homework, dissertations, tax returns or topping up your ISA, most of us are guilty of procrastinating in some area of our life and then having to do important things in a rush.

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The importance of dividend growth

Over the past decade, exceptionally low interest rates have forced many cash savers into the stock market in the search for a better return. For those needing a decent level of income today, funds with high yields can be a good option. However, for those investing for the longer term, funds that can consistently grow their dividends could be a better alternative. This is because if you can invest in a fund providing meaningful dividend growth, your spending power, and therefore standard of living, should increase in the future – it allows you to keep pace with inflation.

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Trump's steel tariff and its impact on your investments

President Trump is once again creating waves - and another vacancy at the White House. Gary Cohn, his top economic adviser, resigned this week having been unable to persuade Trump against imposing import tariffs of 25% and 10% on steel and aluminium, respectively.

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High-yielding income options for your ISA

When it comes to earning an income from your investments, there are various options you can consider. Firstly, you can look at the different asset classes that yield an income. Then you can look at whether you want to your income to be at a high level or whether you prefer it to be growing. Different investors will have different priorities.

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Global dividend payments break new records

Dividend payments around the world soared in 2017, with 11 out of 41 countries breaking records, according to the latest Global Dividend Index report from Janus Henderson. A huge $1.252 trillion was paid out to global shareholders last year, with underlying growth of 6.8%* and every region of the globe seeing dividends increase on aggregate.

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Five ways to invest in falling markets

Every investor should know that their capital is at risk – after all, there is no such thing as a free lunch. Another cliché which lends itself to investing is that whatever goes up must come down, and this is certainly true when it comes to stock markets.

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Naughty and nice investments in 2017

It's that time of the year again. The fairy lights have been arduously untangled, Michael Buble's dulcet tones are resonating throughout every single shopping centre in the UK and clothes which fitted perfectly just a couple of months ago are suddenly feeling snug.

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The rise of the robots

In today's Autumn Budget, Philip Hammond, Chancellor of the Exchequer, declared that the world was on the brink of a technical revolution, with Britain at the forefront.

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Three reasons to invest in VCTs ahead of the Budget

The Autumn Budget is now just a week away. Whether it's the excitement of playing along to 'buzzword bingo', guessing the colour of the Chancellor's tie, or you want to know whether filling up the car or going to the pub is going to cost you more... it’s one of the most highly-anticipated events of the year for anyone genuinely interested in their finances.

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Indian equities shining brightly

I recently learnt that the first day of Diwali, the Hindu festival of lights, is dedicated to celebrating prosperity. This is an official holiday in India, where I think they have good cause for celebration. Despite the impact of de-monetisation and the introduction of the Goods and Services Tax (GST), which have both had a short-term negative impact on GDP, India remains one of the fastest-growing major economies.

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Meeting a contrarian contrarian

Investment processes – important as they are – can be very dull and repetitive. Indeed, if I had a pound for every time I'd heard a fund manager describe themselves as 'bottom-up contrarian' or a 'pure growth stock-picker' I'd have likely retired by now and be sitting on a beach somewhere sipping a cocktail, rather than writing this blog on a grey day in Fulham.

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The value of reinvesting dividends

First impressions can be deceiving. Looking at the table below, investors could be disappointed at the performance of the UK stock market in recent history – particularly over three and ten years. 

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Trump-resistant renewable energy

Despite appeals from foreign leaders, the CEOs of some of the world's largest companies (including Exxon, Apple, Alphabet and Tesla), and even his own children, President Trump decided to walk away from the Paris Climate Change Agreement last month.

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Luxury brands: paying over the odds or a sound investment?

I'll admit that I'm not new to the concept of accessorising, but having just spent the past couple of weekends looking for a new car with my husband, I have to say I hadn't realised it extended to automotives. Who knew that BMW has partnered with Montblanc to make the “'next generation in luxury wearable technology”? Certainly not me. Apparently having a stylish key you can wear on your wrist that will open car doors and start the engine for you is a good reason to pick the new 5 series! I think not. I just need a bigger boot.

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Investing in uncertain times

We live in an increasingly unpredictable and changing world. Last year in particular was full of surprises and, as one fund manager pointed out recently, if you are participating in a pub quiz in 10 years’ time and are stuck for an answer, just shout out '2016’ and there will be a decent chance that you get the question right.

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Five tips for inflation-proofing your pension

According to the Office of National Statistics, consumer price inflation (CPI) rose to 1.6% in November 2016, its highest level since July 2014. Although this is still below the Bank of England's 2% target (the level they think is a sign of a healthy, growing economy), it suggests that inflation is finally starting to make a come back.

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Five tips for inflation-proofing your pension

According to the Office of National Statistics, consumer price inflation (CPI) rose to 1.6% in November 2016, its highest level since July 2014. Although this is still below the Bank of England's 2% target (the level they think is a sign of a healthy, growing economy), it suggests that inflation is finally starting to make a come back.

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Naughty and nice investments in 2016

The festive season is well and truly upon us and my childrens' Father Christmas list had been growing at an exponential rate, so I'm rather glad that it has now been posted. On the whole they've been nice this year, so Christmas morning should be fun.

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Will the oil price improve in 2017 (and beyond)?

 You may have seen the news last week that OPEC (Organisation of the Petroleum Exporting Countries) members have agreed to reduce their oil production for at least the first six months of 2017. Unexpectedly, non-OPEC oil producers such as Russia have also agreed to lower targets. So will this mean a higher oil price in 2017?

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What's the best way to help your kids through university?

As parents around the country make last minute trips to the shops, spending what seems like a small fortune on new school shoes, uniform and stationery, ahead of the return to classrooms next week, it's perhaps sobering to consider that by the end of their education, many children will have debts of £44,0001

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Asset allocation: ignoring rules of thumb when it comes to your retirement portfolio

Our investment portfolios can, and should, change a lot over time. When we are younger we can afford to take more risk. After all, we have decades in which to save and time to recover from any stock market crashes. As we get older and start approaching our retirement, we then start to 'de-risk' as we can't take as many chances with our money. But what does de-risking actually mean and how should we go about it?

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Investing in Asia: it's not just China and Japan

Uncertainty over China has put some people off Asia in recent years, but long-term investors ignore the region at their peril. In my view, recurring themes of young populations, growing middle classes and well-educated masses make the potential returns worth a bit of extra risk.

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The case for investing in the US

The US remains the world’s single largest economy. Indeed, at the end of 2014 its nominal gross domestic product (GDP) was more than US$17.4 trillion, according to the World Bank. That’s more than the total GDP of France, Germany, Japan and the UK put together.

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Lifetime ISA – a Trojan horse for long-term saving, or a blessing?

The arrival of the new Lifetime ISA in April 2017 seems likely to be a harbinger of wider change in the UK’s approach to long-term, and indeed retirement, saving. The creation of the new ISA has been widely acclaimed by the popular press, but will it do more harm than good as it seems poised to impact on existing policies, such as Automatic Enrolment into pension saving?

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Transformation of the FTSE 100

Having peaked at 7,103 on 27th April 2015, the FTSE 100, the leading UK share index, fell as low as 5,536 earlier this month – a drop of 22%. It has since risen slightly and, at the time of writing, is around the 6,000 mark.

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Are you invested in a consistently underperforming fund?

This time last year, the price of oil had fallen to a six-year low, Europe was having deflation issues, the UK government was trying to woo voters and Aberdeen was the worst offending company in the Chelsea RedZone – our regular review of the most consistently underperforming funds – with 10 funds on the list.

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Oil – contrarian ‘Spring’ bet or April fool?

Last week, the price of a barrel of oil fell below $30  – a fall of almost 80% from its peak of $147 in July 2008, with most of the fall coming in the past 18 months. Some analysts have suggested it could fall as low as $10 per barrel, at which point oil would become cheaper than some bottled water!

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Six reasons why 2016 could be another volatile year for investments

2015 wasn't a great year for investments. Despite the UK stock markets hitting an all-time high in April, the FTSE 100 ended the year almost flat. Other develop markets fared a bit better, but emerging markets continued their downward path, losing almost 10%.  Bonds, on average, made nothing either*. Can we expect a better 2016? Personally I'm quite cautious and think the year could be just as volatile. In no particular order, here are six reasons why:

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Five reasons European markets could beat the US in 2016

The US market has been a great place to invest since the financial crisis began in 2008. It has  outperformed Europe in six of the past eight years. From 1st Jan 2008 until now, the European market is up just 17.39% compared with a rise of 107.9% in the US. A remarkable difference.

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2016: Time to batten down the hatches

2016 could be volatile. The US has finally started raising interest rates and the UK could be next. No one expects the four usual 0.25% increases in short succession, which usually mark the start of a rate rise cycle, but markets don't like the unknown and that is what we are facing as quantitative tightening (QT) begins.

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Naughty and nice investments in 2015

The festive season is well and truly upon us and my childrens' Father Christmas list had been growing at an exponential rate, so I'm rather glad that it has now been 'posted'. On the whole they've been nice this year, so Christmas morning should be fun.  

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Trend investing

You'd think it would be simple, wouldn't you? Identify a long-term trend, invest your money in a company (or companies) that is playing this theme, and sit back and wait for the next 30 years or so. Unfortunately, that's not the case.

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US income funds

It's a well-known fact that it's difficult to find a good, actively-managed US equity fund, which consistently outperforms the index. It's even more difficult to find a good US equity fund that produces a decent yield. Most struggle to pay 2%, which is approximately half the amount of many UK equity income funds.

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Oil – black gold or fools gold?

If you are anything like me, you get too many emails every single day and, in a futile attempt to keep on top of them, have a 'to read later' file on your computer. So it's always good when one hits your inbox that has an interesting enough title that it gets read immediately.

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Where Next for China?

I've spoken to a lot of fund managers about China, and the general consensus is that China will be OK, but the contrarian in me can't help feeling a bit uncomfortable that fund managers don't seem more worried. Nobody really wants to consider the possibility that the situation in China might deteriorate. Unemployment in China is never mentioned and, even though many agree the growth data may be exaggerated, I've never even heard anyone consider the possibility of a Chinese recession at some point. There seems to be a natural unconscious tendency to support the view that China is all right, perhaps because the alternative is too discomforting to consider.

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Frontier markets – Vietnam

In the third and penultimate blog in my mini-series on frontier markets, I will be looking at Vietnam – a country many still think of in terms of its eponymous war with the US in the 1970s, or the destination of choice for 'gap years', rather than as an investment opportunity. However, for many reasons, it is now being dubbed the 'new China' of the Southeast Asia region. So what is drumming up such adulation?

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The best and worst of fund management

My day job is basically interviewing fund managers, trying to identify the ones I think will do the best for my clients. Without wanting to sound too cocky, I'm not too bad at it either – with the help of the other guys on  my research team, the funds chosen for our Core Selection list (the funds we think should be at the heart of people's portfolios) have, on aggregate beaten the benchmark (the IA Flexible sector) by more than 60% over the past 14 years*.

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Taking a look at Poland

It might come as a surprise to some people that Poland is still considered to be an emerging market, let alone a frontier market. It's the sixth largest economy in Europe, has low levels of public debt and has experienced stable growth throughout the past decade - in spite of the global recession and ongoing eurozone woes. But a frontier market it is.

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Lumps, bumps and buying on the dips

Well it's been an exciting few days in global stock markets - if rollercoasters are your entertainment of choice, that is. If you're not so keen then you would be forgiven for replacing the word 'exciting' with 'worrying'. It's never nice to see your investments fall in value. Even less so, when they drop by 10% seemingly overnight.

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Iran - a new frontier

With China imploding, Latin America in heavy decline and Russia seemingly on a path of global exclusion, the emerging market growth of yesterday is looking increasingly unattractive. So where could emerging market managers turn to now? What is the next generation of countries to move into the investment spotlight? In the first of a new series, we look at the next generation of emerging markets and see what opportunities lie ahead for investors hoping to get to the frontier of the investment world.

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The secret currency war

Since the financial crisis, countries have secretly been trying to devalue their currencies to make their economies more competitive. For a long while China was the punching bag in a secret currency war. The United States, UK, Europe and Japan all engaged in quantitative easing (QE) and devalued their currencies versus China. This helped their economies stay competitive and enabled them to export billions of pounds worth of goods to China. Chinas internal growth was able to absorb the deflationary weakness of the rest of the world for the past few years. Now that’s no longer the case and China is fighting back. A week or so ago, China shocked world markets by devaluing its currency. Stephen King, an economist at HSBC, warns that the Yuan devaluation breaks the last line of global economic defence. 'World authorities have run out of ammunition as rates remain stuck at zero'.*

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Characteristics of investment success

Investing isn't easy. Even the best fund managers hit bad patches and their investors have had to show immense mental strength in the face of some heavy losses. Despite this, over the long term, funds with certain characteristics can do extremely well.

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Active Share – the Holy Grail of fund comparison?

Active management is a way of running a portfolio in order to try to outperform an index or benchmark. It is characterised by relying on a manager's stock-picking skills, believing they have the abilities to identify the best stocks available and generate a higher return from them, thus outperforming a benchmark. These funds often have higher management fees and ongoing charges than passive/index fund managers - those who aim to match the benchmark - in order to justify the more frequent trading and deeper analysis needed.

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Five fund managers you should have followed

In the asset management business there's a lot of competition to attract star fund managers. A fund group will do just about anything to steal a great manager from their rival. This means fund managers often move from one group to another. That's fine if you're the fund manager but it makes it very difficult for investors to keep up. In the past month two star managers have announced they are leaving their existing funds.

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UK active managers crush passive funds to defy academics

Investors are increasingly being encouraged to buy tracker funds which only seek to match a stock index, rather than trying to beat it. Academics and passive investment companies have been pushing the idea that we would all be better off in these funds because of their lower charges. A YouTube documentary, advocating passive investing, now has over a 100,000 hits. The result of this marketing push and lower costs has been a surge in tracker investments. Passive funds now account for 25% of the US market and 11% of the UK market.*

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Why the case for investing in Japan remains strong

We have been backing Japanese equities for the past two or three years, since Prime Minister Abe’s “three arrows” of fiscal stimulus, monetary easing and structural reforms began. Arrows one and two have proved effective and, after decades of false dawns, a stimulus-pumped Japanese equity market has finally started to deliver strong returns.

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Bringing financial education to the masses

The surprise majority win of the conservatives last week has resulted in a number of key roles changing hands. Some have yet to be decided, whilst others are already known. One of which is the appointment of Ros Altmann, a familiar commentator in our industry, and a champion for pensioners, who has been appointed pensions minister.

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Convertible bonds explained

In today's low interest rate environment, investors need to make maximum use of all available asset classes when they construct their portfolios. One, often under appreciated asset class are convertible bonds. A convertible bond is simply a bond which can potentially be converted to shares.

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Changing allocation to meet retirement needs

According to the Office of National Statistics (ONS) one in three children born today will live to be 100. Those readers with a 'glass half full' attitude, or those who are familiar with the eight wonder of the world, compounding, might say that this gives our children longer to save a decent retirement pot.

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Basic rules of investing

Many ordinary people dislike the idea of investing in the stock market and it's not hard to see why. Over the past 15 years we've seen constant negative headlines. We've witnessed two huge market crashes, with the end of the tech bubble in 1999 and the recent financial crisis of 2008. Both resulted in almost a 50% decline in the UK stock market. Every few months we hear of another story of companies blowing up. The latest examples are Tesco, Balfour Beatty and Quindell, and there have also been the Madoff and Enron fraud scandals!

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The Savers' Revolution: Where to invest, a SIPP or an ISA?

The changes announced in the March budget were good news for investors, and the Savers' Revolution looks set to continue. George Osborne's latest move was to scrap the 55% death duty currently levied on pensions. So, where has this left investors? Should we be putting our money in an ISA or a SIPP? The wrong choice might cost you thousands of pounds, so it's worth researching.

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Property Securities – a decent home for your money?

Property has become fashionable once again over the previous 18 months. The once maligned sector, which was characterised by large drawdowns and daily liquidity being suspended, in some cases, during the financial crisis, has two funds in the top 10 for net inflows in the seven months up until the end July of 2014.

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Finding a good emerging markets fund is becoming increasingly difficult

Emerging market equities make up an important part of my investments. They’ve offered investors some exceptional returns over the long term, all be it at higher volatility. For the past few years the asset class has struggled, however, as money has flown back to the developed world after the US began tapering its quantitative easing programme. It has done better recently; whilst the UK stock market has been almost flat for the year, emerging markets have returned 10.73% year to date.*

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Water – an investment opportunty

I wouldn't be a true Brit if I didn't mention the weather in a blog. We complain about it all the time – it's too hot or too cold, too wet or too dry. Whatever it is, it is notoriously difficult to predict and we often get it wrong.

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Draghi: two years on

On 26th July 2012, amidst worries about a eurozone breakup and countries being forced to exit the euro, Mario Draghi, president of the European Central Bank (ECB), announced that he would do ‘whatever it would take’ to save the euro.

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In defence of active management

A study by the Cass Business School recently claimed that just one in a hundred fund managers consistently beat their benchmark. It suggested that investors would be better off investing in passive index trackers, which charge lower fees.

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Problems in Iraq bring crude oil back into the limelight

Until recently, the price of crude oil had enjoyed one of its most stable periods, with tensions following the toppling of Gaddafi in 2011 abating and both demand and supply remaining steady in the years following. However, with rise of ISIS in Iraq threatening to push one of the world's biggest oil producers into civil war, the oil price has moved out of its recent trading range and has led to market commentators taking another look at the asset class, both in terms of the oil price itself and oil equities.

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Has Obamacare been a success?

On 1st January this year, Obamacare came into effect and, with it, the potential to bring more than 20 million more people into the US healthcare system. At the time, I asked a number of healthcare specialist managers, and more generalist US equity managers, if they thought Obamacare would be the 'cure-all' for the sector.

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Has Draghi done enough to keep Eurozone on path to recovery?

Just under two years ago, Mario Draghi, President of the European Central Bank, promised he'd do whatever it would take to save the Euro. His words alone seemed to be enough for markets and until now, he has not been tested. Last week, however, he started to make good on his promise.

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Will the FTSE ever break through the 7,000 level?

Opinion on where equity markets are headed is really quite divided at the moment. On the one hand, Richard Buxton of Old Mutual, a very experienced and successful UK equity manager, whom I rate highly,  has said he believes we are at the beginning of a long-term bull market. The guys at Neptune are equally bullish.

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The desperate search for yield

The hunt for yield is getting even harder for investors seeking income. Any hope that the recovery in the UK economy would encourage the Bank of England to raise rates was blown away last Wednesday as it was made it clear that rates would not rise until next year at the earliest.

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Is there a bubble in high yield bonds?

There has been some talk in the media in recent months of a “bubble” forming in the high yield end of the bond market. I thought now would be a good time to evaluate the outlook for high yield bonds going forward and what it means for UK investors.

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New data suggests that corporate spending could be about to pick up

Despite the squeeze on budgets, caused by rising inflation and slow wage growth, consumers have been the major driving force behind Britain's rapid economic recovery.  Figures out today (29th April) show that the UK economy has grown by a further 0.8% in the first quarter of this year, fuelled by unexpectedly strong consumer spending in March. While in general this is good news, it has raised concerns that the recovery remains too dependent on unsustainable growth in consumer spending. The recovery needs to broaden out.

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Is now the time to invest in the ASEAN region?

Investors' obsession with China and Japan has meant many of us have overlooked the potential of the ASEAN region, the association of South East Asian nations, made up of Indonesia, Malaysia, the Philippines, Singapore, Thailand and now also Brunei, Bangladesh, Burma (Myanmar), Cambodia, Laos and Vietnam.

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How to choose the right fund for your ISA

There are now just a few days left to take advantage of your annual ISA allowance (£11,520 investment ISA allowance for 2013/2014). With the paltry rates on offer for cash ISAs, many investors are looking to invest in funds instead.

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China – Meltdown or Slowdown?

I'm often asked about China as an investment opportunity. Mainly because its economy has such an impact on both emerging and Asian equities, but also increasingly more on global equities.

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Hailing ISA independence day!

ISAs are approaching their 15th anniversary and, over the years, any tweaks to the wrapper have generally been disadvantageous. The 2014 Budget has finally reversed that trend and the ISA has become a formidable tool for savers and investors.

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Still bullish on Japan in the medium term?

This time last year markets were swooning over the Japanese prime minister, Shinzo Abe's, package of reforms, known as Abenomics. In fact, the Nikkei 225 was the top-performing developed market index in 2013 and, coming into 2014, many market commentators, including Chelsea, tipped the Japanese market for further gains. However, the Nikkei has traded sideways for the last few months and there is now talk that the big asset allocators, such as global macro hedge funds, are starting to lose patience. I thought now would be a good time to re-evaluate the prospects for Japanese equities and analyse what might be the catalyst to push the Japanese market higher.

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Will emerging market woes continue?

For much of 2013 the world's big stock markets had a spring in their step, with America's main index, the S&P 500, and Japan's Nikkei 225 leading the way, with gains of 30% and 57%* respectively. However, the story in emerging markets was somewhat different, with the sector posting a loss for the year, and some markets seeing steep declines, with the MSCI Brazil, for example, down more than 20%*.

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Where will the money be invested this ISA season?

As we head into ISA season, I always think it is interesting to see what our investors are buying. The last couple of years have seen a slight swing away from bonds to equities, but in general, the trend has been pretty similar: UK Equity Income funds have been the most popular, followed by UK All Companies and Strategic Bond, then Asia Pacific ex Japan and Global equity funds making up the top five selling sectors.

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Facebook's 10th anniversary

The technology sector has always been one of quite rapid change and exciting opportunities. Just 10 years ago, in 2004, many people still didn't have a mobile phone and the thought that within just a few years you would be able to use one for surfing the internet, taking photos and paying bills, was beyond most people's comprehension.

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Is there a UK residential property bubble?

2013 saw the start of a full recovery in the UK housing market. The government has done everything possible to resuscitate the market and last year its efforts finally worked. According to the Nationwide prices rose by 8.4% in 2013, that compared to a 1.1% fall in 2012. Price changes continue to vary widely across the country. London prices rose over 15% last year compared to a rise of just 1.9% in the North of England where the increase was lowest.

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Property: another option for income investors

With interest rates still at record lows, and tapering in the US set to begin this month, the worries over bonds and rising yields leave income investors in a bit of a quandary: higher yields mean more income but could result in capital losses. So what other options do they have?

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