By Tom Bailey from interactive investor. It's inevitable that the unremitting global economic cycle will impact stock markets, but when? The economist Paul Samuelson once joked that the stock market has predicted nine of the past seven recessions. But while the over-reactive nature of equity market investors and their poor predictive powers ring true, there is nonetheless a clear link between economic and market performance, at least in advanced economies. Indeed, between the 1929 crash and the global financial crisis of 2008, there were 10 bear markets - periods when global equity markets declined by more than 20% from peak to trough. Only two - the flash crash of 1962 and 1987's Black Monday crash - were not accompanied by a recession. This correlation makes sense. During a recession, consumers spend less, businesses invest less, loans are defaulted on, vendors go unpaid and companies go bust. This wreaks havoc on the profitability of firms and sometimes threatens their survival, … [Read more...] about This investment clock says what assets to buy and when
How to buy and sell shares in stock market
How to choose a provider for your Stocks and Shares Isa
Isas are a popular way for savers to squirrel away money. And given that these savings accounts are free from both capital gains and dividend tax, the Stocks and Shares Isa is particularly appealing to investors. With all that said, not all Isas are created equal, and charges can vary wildly across providers. Platforms can usually be divided into those with flat administration charges, and those that charge a percentage on holdings. So depending on your intention for the Isa, it pays to take care when deciding which provider to go for. For example, if you’re an active buyer and seller, it might be more cost-effective to choose a provider with a flat trading fee, otherwise your savings could be wiped out by hefty dealing charges. Reinvestment fees, transfer charges, and exit fees can also hammer you if you aren’t careful. So make sure you know the Isa inside out before using it as a platform to invest. If you’re trying to decide where is best to house your money, here … [Read more...] about How to choose a provider for your Stocks and Shares Isa
How To Build A $100,000 Portfolio — Or An Even Bigger One
Jan 29, 11:42 PM EST Newsletter Signup BusinessTechnologyWorldNationalMedia & CultureOpinionSportsLuxury Business By Selena Maranjian 01/29/19 AT 11:30 PM Perhaps you're sitting on several thousand dollars of debt and with a thousand dollars or less in the bank. The idea of having a portfolio worth $100,000 (or more) may seem impossible -- but it's not. You're not going to build great wealth with the money market or in savings accounts these days, so take some time to learn about stocks, which offer higher returns and can build amazing wealth.Even if you already have a portfolio worth $100,000, you may be surprised at how much bigger it can get: Becoming a millionaire is very possible for lots of unsuspecting Americans. Here's a guide to vastly improving your future financial security.Your soon-to-be $100,000 portfolio will likely consist of some or all of these investments:Index fundsManaged mutual fundsIndividual stocksDividend-paying stocksBut first, a pep talkIf you're … [Read more...] about How To Build A $100,000 Portfolio — Or An Even Bigger One
How To Start Investing In A Cashless Society
Jan 28, 7:54 PM EST Newsletter Signup BusinessTechnologyWorldNationalMedia & CultureOpinionSportsLuxury Business By Matthew Cochrane 01/28/19 AT 7:13 PM The world is changing the way it conducts business. For centuries, humans have used cash to buy and sell goods and services because local fiat currency has been the most efficient way to to conduct commerce. Yet, over the past several decades, technology has drastically changed consumer behavior as well as how governments respond with new rules and regulations. Recent seismic payment shifts away from cash have been driven by the rapid rise of e-commerce and mobile payments.Meanwhile, businesses have faced new opportunities and problems. How quickly is the world moving toward a cashless economy? Are certain geographic areas more likely to experience this transformation? Is this a positive change for society? We'll explore these questions, with an aim to capture nuanced … [Read more...] about How To Start Investing In A Cashless Society
Members’ guide: How to save money despite living in Sweden
This article is available to Members of The Local. Read more Membership Exclusives here.Bills and finances Often when people are looking to save, they first think about cutting down on luxuries such as meals out or clothes and accessories, but there are often savings to be made when it comes to household bills. Go through all your regular costs, and look for any payments you're making for services you don't use, or any that you don't understand, then contact the company to clarify or cancel. For example, if your home insurance includes good travel insurance, you don't need a separate travel insurance policy. If you get your bills sent to your home, you might be charged an administrative fee (administrativ avgift) which you could cut out completely by going paperless and checking your bills online. The next step is to see if you can make any smarter choices with regular bills, such as upgrading your home insurance to include travel insurance if that is cheaper than paying … [Read more...] about Members’ guide: How to save money despite living in Sweden