Despite the scare stories that the rise of passive investing imperils markets and capitalism, from an investor perspective exchange-traded funds and index trackers have done exactly what they promised. They have provided solid market returns with ultra-low fees.
Heavy selling has returned to the US market, seeing a relatively steep decline on Tuesday (20 November).
The Down Jones industrial closed -2.21% down on the day, while the S&P 500 ended the day down by -1.82%. This puts both indices in negative territory year-to-date, with the Dow down -1.44% and the S&P 500 down by -2%.
Companies around the world handed out a collective $354.2 billion in the third quarter of 2018, according to Janus Henderson’s Global Dividend Index.
That puts headline growth for global dividend payments at 5.1% compared to the same quarter last year.
British companies saw a slower rate of headline dividend growth in the third quarter on the back of a stronger US dollar and a weaker pound, according to the latest Janus Henderson Global Dividend Index.
UK-listed companies paid out a total of $33.3 billion worth of dividends to shareholders in the third quarter of 2018. This marked an increase of 3% in headline dividend growth compared to the same quarter in 2017, lagging the overall global rate of 5.1%
It’s a well-established maxim in investing that over the long term, equities outperform bonds. While stocks may be more volatile, the stability of bonds generally comes with lower performance over a longer time frame.
Too many people may be taking too high levels of income out of their pension pots and risk making their retirement plans potentially unsustainable, new research has found.
One in three fund managers think the US market has peaked, according to Bank of America Merrill Lynch’s monthly Global Fund Manager Survey. However, for the most part, fund managers surveyed seemed more concerned about worsening global conditions than the US.
First, a total of 44% of fund managers expect global growth to slow over the next 12 months, the most bearish outlook for the global economy since November 2008.
Despite the predictions of a synchronised global upswing in 2018, so-called “growth markets” have provided investors with anything but this year. The MSCI Emerging Markets index peaked in January, but has since continued to edge downwards. It reached its lowest point at the end of October, a decline of around 27% from its yearly high.
For the first time since the 1940s, the state pension age is now the same for both men and women, as of 6 November.
The state pension age is the earliest age at which someone can claim the state pension. The age has stood at 65 years old for men, with, historically, women allowed to claim earlier.
As was widely predicted, the Democrats took hold of the House of Representatives, the lower chamber of Congress, in the US mid-term elections. Meanwhile, the Republican Party has managed to retain control of the upper chamber, the Senate, increasing its majority.
Here, we run through the possible implications as far as investors are concerned.