The Next Warren Buffett

A young investor recently asked my why stock markets fall when interest rates rise. He was referring, in case you haven’t already guessed, to the latest market chatter about the American Federal Reserve’s decision to start winding back the amount of cheap money that it pumps into the markets.

He went on to say that if interest rates go up because the economy is improving, then surely stock markets should rise because companies could be more profitable.

Understanding Risk - Volatility

When we hear or read the term “risk” it is predominately perceived as negative or something to be avoided or a threat that we hope will not materialise. Risk is a fundamental part of life. It exists because we are uncertain of the outcome of a particular decision or course of action. There is always a certain degree of risk in any decision we make concerning our life, career and, of course, financial choices. In investing, however, risk is inseparable from performance. Rather than being desirable or undesirable, risk is simply necessary. Understanding risk is one of the most important aspects of financial education and we would be foolhardy to ignore its existence, especially when it comes to investing.

How To Spot Growth Shares

Growth appears to be back on the agenda again. For years, growth has been put on the back-burner as companies focus on efficiency, downsizing and cost cutting to survive the fallout from the banking crisis of 2007.

Who can blame them for battening down the hatches?

Have You Missed The Boat?

With all the talk about risk on and risk off, it is sometimes easy to lose sight of why we invest.

Risk on, is what happens when the market believes that the US Federal Reserve will continue to pump shedloads of money into global economies. With plenty of cheap-to-the-point-of-being-almost-free-money looking for a home, some of it could end up in the stock market, which would help to push stock prices higher.

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