WSJ: British Stock Investors Go ‘on Strike’ Ahead of Brexit

By SIMON CONSTABLE

Individual investors in the U.K. soured on fund investments in a big way in 2018, and analysts say nervousness over Brexit was mostly to blame.

The amount of money flowing into retail investment funds in the U.K. plummeted more than 85% last year to £7.2 billion (about $9.2 billion) from £48.5 billion the year before, according to recently published data from the Investment Association, a London-based fund-management trade body. Last year’s total was well below the £22.3 billion average over the past decade, the data show. Read more here.

TeroVesalainen, CC0, via Wikimedia Commons

WSJ: In a Down Market, ETFs Could Make Things Even Worse

By SIMON CONSTABLE

There’s a potential problem lurking in the financial markets, and it is partly a result of exchange-traded funds.

While ETFs have been widely praised for lowering trading costs, and have soared in popularity with investors, there have been concerns dating back at least to 2011 that the profusion of ETFs based on the same or similar stocks makes markets more vulnerable in times of volatility. Read more here.

Photo by Robb Miller on Unsplash

Barron's: Ferrari’s Stock Could Keep Speeding Ahead

By SIMON CONSTABLE

While many automobile makers are stuck in second gear, Italy’s Ferrari is speeding ahead.

The recent improvements in the luxury-car maker’s operating performance will probably continue, the stock looks cheap, and the company just gave an optimistic outlook for this year. Read more here.

Ank Kumar, CC BY-SA 4.0, via Wikimedia Commons

Forbes: The World Has Changed And Leaders Need To Do So Too

By SIMON CONSTABLE

Savvy investors don't spend most of their time trading. They spend their time reading to stay informed about a fast-changing world.

If you don't already do so, try doing the same this year.

A great place to start is the recently published The Leadership Lab: Understanding Leadership in the 21st Century, by Chris Lewis and Pippa Malmgren. Lewis (whom I've met) is a best-selling author and Malmgren (whom I also know) is a former economic advisor to President George W Bush. Read more here.

Forbes: Economic Disaster Threatens Algeria

By SIMON CONSTABLE

Things are bad in Algeria, and they will likely get far worse.

"[...] crunch point is approaching fast," states a recent report from London-based financial analysis firm Capital Economics.

The problems stem from a multitude of factors including a weak oil price and rotten economic policies, which are both exacerbated by recent mass protests.

If things don't change soon, then expect higher inflation, skyrocketing unemployment, and the likelihood of the government running out of cash within a few years, analysts say. In other words, Algeria is heading for something close to an economic Armageddon. Read more here.

Forbes: Norway Makes Multi-billion Dollar Bet On Britain's Economy, And You Should Follow Suit

By SIMON CONSTABLE

Norway has placed a bet on Britain totaling tens of billions of dollars, even though no Brexit deal has been signed with the European Union.

Savvy investors should follow suit by investing in British stocks such as those in the FTSE 100 index, which tracks the largest public companies in the UK. Read more here.

Photo by Mikita Karasiou on Unsplash

TheStreet: How Gold Mining Merger Mania Is Here to Stay

By SIMON CONSTABLE

The merger mania sweeping the gold mining sector isn't a flash in the pan - it's likely just begun.

Unless these companies want to shrink, they must continue to gobble each other up.

"There is going to be a new wave of M&A as a way to grow reserves especially because organic growth is so hard to come by," said Matthew Miller, a Denver-based equity research analyst at financial research firm CFRA. Read more here.