As an investor on the outside looking in, what seems to be an ongoing raft of trade execution regulations can often appear overly complicated and cumbersome. However, these guidelines and regulations are critical to the smooth running of investment markets for many different reasons.
There will undoubtedly be some interesting times ahead for the new Chancellor of the Exchequer, Rachel Reeves, as she inherits the “worst economic circumstances since the Second World War”. Amid speculation that inheritance tax changes are just around the corner, raising more than £1 billion a year, it’s important to appreciate the state of the UK economy and finances.
While there is constant talk about the FinTech and digital banking sectors, which have revolutionised the financial sector, many believe we are just scratching the surface. It’s important to differentiate between the two services. FinTech refers to the integration of technology into offerings by financial services companies. Digital banking is the provision of banking services that allow consumers to carry out transactions through electronic means. Sounds simple, but how big are these sectors?
Behavioural finance is an interesting topic that differs from traditional finance theories based on facts, figures and fair valuations. This concept first emerged in the late 20th century, with Daniel Kahneman and Amos Tversky at the forefront of coverage. It’s essential to appreciate behavioural concepts, as a survey back in 2018 showed that 83% of financial advisers believe that behavioural finance was at the heart of many so-called market anomalies.
In recent years, we have seen actual and planned changes to the state pension age that will impact millions of people. There is a degree of confusion because the assumption that life expectancy increases generation by generation has been disrupted by the pandemic and, to a lesser extent, the cost of living crisis. So, how should we plan for pensions going forward?
When it comes to investment diversification, it’s easy to assume that nothing has changed over the years, but this is a very big assumption (and wrong). Looking back, our attitude to diversification and the way we achieve this have changed dramatically since the 1960s. This has allowed investors to spread their risk, reduce overexposure, and maximise returns while injecting a degree of protection. You will be surprised how much the approach to diversification has changed!
While financial markets are always at the forefront of new technology, artificial intelligence (AI) is having an impact like nothing before it. One of the frightening things is that many people believe we are only just scratching the surface and there’s a lot more to come. Whether looking at investment decisions, risk assessment or simply the analysis of big data, the potential going forward is huge.
While the term prime broking services relates to a package of services, it can incorporate various specialities. Provided by investment banks and financial institutions to a range of hedge funds, institutional investors, and professional market participants, prime broking services not only help with fluid trading but also enhance liquidity in the marketplace.
The term impact investing has grown in popularity, and while more recently associated with the younger generation, it is attracting interest from all age groups. In simple terms, impact investment can be described as:-
The IMF recently released an update on world economic outlook growth projections, which continued to reflect significant differences between developed, developing and emerging markets. Even though the UK recently surprised on the upside, with growth of 0.6% in the first three months of 2024, there are still challenges ahead.