Tony Yarrow

Coronavirus: how should investors handle the biggest macroeconomic shock of all?

For markets and investors, the Covid-19 epidemic represents an extreme liquidity event. Virtually overnight, companies are losing a large proportion, and in some cases all, of their income, while their expenses continue to accrue. 

The challenge is sudden, extreme, shocking and potentially fatal. Governments have rushed out measures designed to preserve economies and companies through an unprecedented period of shutdown. 

The dot-com bubble is a warning from the past

At the start of the 1990s, there were just two TMT (technology, media and telecoms) companies in the FTSE 100 index - BT and Vodafone. By the end of the decade, there were more than 20, including the likes of the soon-to-be-forgotten Telewest, and former minnow, Kingston Communications, the Kingston-on-Hull telecom provider, which never again reached a fraction of its QI 2000 value.

10 investment trusts for income investors

In the last 10 years, the value style has faced a headwind as risk-averse investors have paid ever higher premiums for the shares of companies with highly visible cash-flows or superior growth characteristics.

Political clarity could unleash investors’ animal spirits

Twenty years after “tough on the causes of crime”, a triumphant Boris Johnson declares himself a “one-nation Tory” running a “people’s government”. His challenge is to succeed where every prime minister since Tony Blair has failed.

The public finances aren’t in great shape, although they are better than they were. There is scope to borrow large sums for long periods at low rates of interest, and there will need to be a modest and carefully targeted increase in taxation as well.

Three ways to profit from British sell-off

As the final act of the Brexit saga approaches, investors are still locked in a state of perpetual uncertainty. We cannot know what will unfold, but what businesses are continually telling the government is how difficult is it to plan in the current environment. Brexit is the moment when we will receive some clarity, for better or worse, and UK company managers will once again be able to start making plans.

10 reasons to choose investment trusts

A closed-ended fund, or investment trust, is a limited company listed on the stockmarket. It has a corporate structure, with an independent board who appoint the fund manager. Its shares are traded on the stockmarket. Someone who wishes to invest, buys shares from an investor who wishes to sell, while someone who wishes to sell can do so only if there is a willing buyer.

Why are investors avoiding the opportunities that Brexit presents?

One of the timeless truths about investment is that retail investors arrive too late in a market rally.

Over decades of investing, I have often witnessed investors leaving markets at the point of maximum opportunity, for example, during the global financial crisis, and now it looks as though UK investors are avoiding the opportunity offered to them by Brexit.

Are ‘tortoise stocks’ poised to win the race in 2019?

As the stockmarket’s super-speedy growth hares roll over, something small, with a dark shape and domed top, is slowly approaching – a tortoise. Finally, it looks as if all the forgotten “tortoise stocks” that investors gave up on years ago, have started catching up as market conditions change.