Eating breakfast this morning, I caught Hugh Hendry, the gloomy and currently outperforming UK fund manager, on CNBC. Hendry’s main call, which he has been rewarded by repeating for months now, is to avoid equities. Yes, the market has fallen, Hendry says, but that doesn’t mean it won’t keep falling. Look at the Great Crash [...]
The Investor
Horizontal diversification is when you hold different instances of the same asset class. In this form of portfolio diversification, you’re trying to reduce localised or industry sector specific risks. A broad index-based ETF is a good example of horizontal diversification. The classic example of horizontal diversification given in textbooks involves the weather, and two companies: [...]
Today Lloyds Banking Group ceded control to the UK government in return for UK taxpayers insuring £260 billion of toxic loans it acquired via its government-brokered merger with HBOS. The UK government’s stake has jumped from 45% to 65% under the terms. Lloyds has also agreed with its new owners that it will lend an [...]
Interest rates, the economy, the stock market… everything is down. The only way (some day) is up!