Many investors have been intrigued by cryptocurrencies since their emergence in 2009 (when Bitcoin was created). Since COVID-19 swept the world in 2020, however, they have become even more interesting as investors have sought strong returns outside of the stock markets…
Many people are interested in investing, but are not fully aware of the range of investment types they could commit their money to. Even experienced investors can benefit from a deeper grasp of how these operate and compliment a portfolio. Below, our team here at Elmfield Financial Planning in Padiham, Burnley…
From a young age we are taught that “debt is bad”. As such, we should seek to stay away from it as much as possible – or clear it quickly. Although this is a good principle for personal loans and credit card debts, it often becomes confusing when people look to get onto the property ladder. For most people, this will involve…
A “sell-off” is easy to see when it happens. A high number of securities (e.g. stocks and bonds) are sold in rapid succession – perhaps hours, days or weeks. The spiral downwards often goes faster as investors feel pressure to sell due to everyone else doing so. The overall psychology of the marketplace turns…
Did you know that, in 2020, the US stock market would have hardly grown – had it not been for the presence of the “Big Five” tech companies (Amazon, Google, Facebook, Microsoft and Apple). The S&P 500 in the USA, for instance, has continued to increase in value over the last twelve months despite COVID-19 – largely because it is very tech-heavy…
Even with an occasional look at the headlines, you’re likely to see that the pound changes value regularly. Vaguely, you may think this affects you somehow – but how exactly? Naturally, if the pound lessens in value against other currencies then it means your overseas holiday is likely to be more expensive (since a pound “buys” fewer Euros, dollars etc.)…
Should you invest your money gradually or all at once? That is the core question at the heart of the debate about “pound cost averaging” and “lump sum investing”. It might sound like a simple matter of choosing whichever suits your preferences, but the decision can have a huge impact on your returns and the long-term growth of your portfolio…
Many people are aware that it is a good idea to invest in a range of assets (e.g. cash, equities and bonds). Yet what, exactly, should the balance be not only between them – but within them. After all, there are many currencies, companies and governments which one could invest in. All of them hold different risks and potential for returns depending on the time and circumstances. In this guide…
If you’ve never heard of negative interest rates before, you’re not alone. For many years, such an idea has remained exactly that amongst economists – an idea which could work in theory, but perhaps not in practice (similar to how scientists typically regard faster-than-light travel). Yet the idea of negative interest rates has recently been tried by economies such as Sweden, Japan and even the European Central Bank (ECB)…
If you’re wondering how to start investing or develop your portfolio, then at some point you will hear about diversification. In simple terms, this refers to the practice of spreading out your investments across many different markets and asset types. Rather than putting all of your eggs in one basket (e.g. by investing all your capital in one stock), this approach helps you to mitigate unnecessary risks.
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