Let’s consider the highly unlikely. Some would say paranoid. How bad can things really get and what might happen to our investments in a worst case scenario?
crisis
The flu that’s flailing away at your nest egg, plus the rest of the week’s good reads…
Rapid growth and financial engineering of synthetic ETFs has created a cocktail of poorly understood emerging risks for investors and global markets warn reports from the IMF and others.
Beware of Greeks bearing gifts, they say. But a UK stock market off 11% in the face of surging earnings and a growing global recovery looks tempting.
The best place to be when the news story about the Dubai debt crisis broke was somewhere where it didn’t break at all.
This series has previously looked at the general principle of investing during a crisis, as well as how you might react to particular headline news events. But crisis investing is also relevant to particular company stocks. Companies are hit by media headlines proclaiming ‘crisis’ all the time, whether it’s a crisis in the boardroom, a [...]
Part one of this series introduced crisis investing and looked at the opportunity to profit when vague fears affect the stock market. But how should you react when a specific event makes headline news? Some events can be very significant for both history and stock markets, such as the fall of the Berlin Wall or [...]
Deciding how to react to a crisis like a potential flu pandemic, a natural disaster or war is one of the most controversial aspects of stock market investing. Many panics, whether they affect the whole market or individual companies, turn out to be false alarms. Even those scares that have substance often turn out to [...]
Stock markets have been falling for months, led by a collapse in confidence in the financial system and plunging bank stocks. In the UK we’ve seen Northern Rock crumble, while in the US the investment bank Bear Stearns lived up to its name after jitters led to rumours which led to a run on its [...]
Last night Alastair Darling, the UK Chancellor, guaranteed 100% of savings in Northern Rock – and indeed the Financial Services Authority has since gone further, stating this guarantee extends to other troubled financial institutions that might emerge in coming days. Given the scenes we’ve witnessed since Thursday’s news that Northern Rock required a lifeline from [...]