Ask any stockmarket old hand for a few words of wisdom that investors should abide by and it won’t be long before you hear the phrase “run a profit, cut a loss”. Intuitively, that makes sense – why would you not cash out of an underperforming investment before your losses spiral, or hold on to a winner for as long as it keeps delivering?
In a recent publication I received from a high-profile broker, the opening article was entitled: ‘You have to be in it to win it’. The conclusion was that if you missed out on the 10 best days in the market over the last 20 years, it would have cost you 3.5% per year, or 166% overall in lost returns.
Correlation between and within a number of asset classes peaked during the financial crisis, prompting investors to question the effectiveness of diversification when building a portfolio.
Teaching children good financial habits will serve them well. We explain how parents can give their kids a helping hand.
Standard Life Investments has closed three cash funds due to ‘potential changes in regulation’.
The Sterling Global Liquidity, Euro Global Liquidity and US Dollar Global Liquidity funds hold £3.5 billion between them.