Market Commentary

As we wait for interest rates to fall in the UK, the FinTech market is back in play. The signs are favourable again after a volatile couple of years due to various global economic and political challenges.

Whether looking at the US, UK or further afield, there is much concern and confusion regarding economies and the timing of expected interest rate reductions. While inflation data suggests these changes could come sooner rather than later, economic figures can often suggest otherwise. However, it is widely expected that interest rates will fall in 2024 and into 2025, which has prompted private and institutional investors to look towards the corporate bond market.

While the Internet is a hive of activity and a honey pot for research, investment trends are emerging based on search volumes. This is basic statistical information at its best, providing dependable data on emerging trends in the investment world. So, which investment trends should we expect to see in 2024 and beyond?

As we approach the end of 2023, it is time to look back at the last 12 months to see which stock markets have held their own, which have fallen and which have risen. The economic outlook for countries worldwide is very different, with interest rates and inflation front and center. Can you guess the best-performing indices?

Cast into the shadow for many years, the junk bond market is grabbing the headlines in the US, something which is likely to be replicated in the UK and globally. Asset management is a critical element of any investment strategy, and locking into relatively high yields can provide steady cash flow. However, there are several anomalies in the junk bond market, issues to be aware of and factors to consider.

There are few industries in the world that can compare with the financial sector regarding innovation and a forward-thinking approach. As an online trader, you will undoubtedly have encountered several technical indicators that may help you with your investment decisions.

As the number of online traders continues to rise, many of those new to investment will be unaware that the UK originally had several regional stock exchanges. They were more focused on regional industries and investors, as opposed to the broader appeal of the London Stock Exchange. Still, they did play a significant role in the UK financial sector.

Online trading services have changed how we invest and encouraged a massive increase in the number of day traders. While the rules in the UK are relatively straightforward, it is essential that you abide by the regulations and are aware of the tax implications of your trading. This is an ever moving situation and you should be mindful of how changes going forward may impact your trading habits.

There is no doubt that the Internet impacts online trading with information readily exchanged and regulated/unregulated advice available on any topic. We’ve also seen the emergence of finfluencers, online influences with millions of followers, talking about, promoting and encouraging online trading. However, is this really having an impact on market movements?

As a professional investor, it is crucial to be aware of the makeup of an index such as the FTSE 100. On the surface, this index contains the top 100 listed shares in the UK, but when you dig deeper, overseas exposure is much greater than you might expect. Consequently, professional investors are exposing themselves to other currencies to an extent which may surprise them.