Negative oil prices? Looking behind the headlines
22 April 2020|5 min
News of negative oil prices has been prominent in the news worldwide this week – something that was not even thought possible by most investors just a few weeks ago. It is not the first time we’ve seen unusual movements in financial assets. After all, negative bond yields were once seen as irrational and are now common. Nevertheless, a negative oil price certainly catches attention.
Nutmeg investor check-in: April 2020
17 April 2020|3 min
Most forecasts agree a recession is looming. But what type of recession? In our latest update, Pacome Breton from Nutmeg’s investment team explains why the external nature of this recession can be a cause for optimism. We also discuss the volatile oil price, US-China trade negotiations and, of course, Brexit.
Intelligent ETF trading – six ways Nutmeg beats competitors
16 April 2020|6 min
We’re often asked, why not do it yourself when it comes to exchange-traded funds (ETFs)? Why do you need a discretionary investment manager such as Nutmeg when you could build your own ETF portfolio, if you wanted to? Well, although the transparency, flexibility and cost-efficiency of ETFs are available to almost anyone, we believe that to maximise their power you need to be smart about fund selection and trading. Here are six ways our approach to ETFs benefits our clients.
Don’t rely on the rear-view mirror to navigate the way ahead
14 April 2020|5 min
Stock market drawdowns are never comfortable, and I say that as someone who’s experienced a few in my years. There’s a temptation to see the money in your investments fall and run for cover. But the rational side of our brain knows this is the wrong response. We know that the first rule of investing – “no risk, no reward” – means there will sometimes be downs as well as ups. The second rule of investing – “spread your risk through diversification” – can also help us here.
Diversification, the only free lunch in investing
7 April 2020|4 min
In the recent environment of heightened market volatility and daily news on the direction of markets or coronavirus spread, it is not surprising that people are re-evaluating their investment decisions. While you may have heard a lot of talk about risk, volatility, corrections and crashes, there is one feature of your portfolio that should always remain in focus: diversification.
A five-step plan to financial wellness in 2020/21
6 April 2020|4 min
Now that we’ve officially crossed into a new tax year, it’s time to put aside deadlines for a moment and… breathe. With the end of the tax year another 12 months away, now is an opportunity to take stock and refocus on your financial goals.
Nutmeg investor update: April 2020
3 April 2020|11 min
March was an exceptional month. The US stock market suffered its fastest bear market in history, while the stock market in the UK witnessed its biggest one-day fall since 1987. But there was upward volatility too. Near the end of the month, many developed stock markets rebounded. Clearly, Covid-19 has had profound effects on the global economy and to everyday life, including for Nutmeg staff. In line with the UK government’s guidance on social distancing, our teams are working remotely, and we filmed this month’s update over the web.
Why does Nutmeg prefer ETFs to mutual funds?
2 April 2020|6 min
Exchange-traded funds (ETFs) and mutual funds have similar structures, are widely available to investors and each offer exposure to a range of different assets. They are even regulated in much the same way. So, why do we prefer ETFs at Nutmeg?
Responses to the current climate: a tale of three investors
25 March 2020|4 min
We’ve seen sharp falls in stock markets lately and that has caused many investors to wonder if they should change their strategy. Everyone’s situation is different, so the right answer really depends on you, but we are able to share a few examples that show the kinds of investor behaviour we’ve seen lately.