GoldCore Wealth Management now has a dedicated website, with its own blog. You can find it here: http://www.wealth.goldcore.com/blog
In a guest article in The Economist, Robert Lucas, the John Dewey Distinguished Service Professor of Economics at the University of Chicago, rebuts criticisms that the financial crisis represents a failure of economics. What can the public reasonably expect of specialists in these areas, and how well has it been served by them in the current crisis?
Financial advisers are to be banned from receiving commission for selling investment, pension and life assurance products from 2012, under radical new rules announced by the Financial Services Authority in the UK. In its Retail Distribution Review, the regulator set out new measures to “ensure that commission-bias is removed from the system – and recommendations made by advisers are not influenced by product providers.”
The Horse Race
I have just completed an analysis of the performance of the spot price of gold vs. Berkshire Hathaway. I think you will find the results are a little suprising.
The following is an excerpt from John Kay's new book 'The Long and the Short of It: Finance and Investment for Normally Intelligent People who are not in the Industry’ as published in the Financial Times Personal Finance section: ...
Research by Skandia has revealed that the majority of IFAs intend to shift away from commission-based remuneration over the next three years.
The biggest disappointment of my time at the FSA has been the failure of firms, and particularly their senior management, to learn the lessons of past mis-selling. Sadly, the recent history of the British retail financial services industry is proof of the adage that those who fail to understand the mistakes of the past are condemned to repeat them.
Following the Thursday night RTE documentary on Irish Financial Advisers, Gold Investments' Wealth Management Division, Wealth N, would like to issue the following statement: - The misleading, unethical and disturbing financial 'advice' seen in last night’s excellent Primetime programme may only be the tip of the iceberg and we call upon the Financial Regulator to become more proactive in protecting investors, young and old alike, from the predatory, dishonest commission driven financial ad
Early evening on the April 14th 1912 and a passenger on the first class deck of the Titanic would be, no doubt, enjoying the opulence of their surroundings, and the wealth that the British Empire had created. More recently, the “Celtic Tiger” has created new wealth in Ireland so that one can now enjoy a similar fine dining experience as the passengers of the Titanic as the menus show. Yet, we know that the very next night it all lay at the bottom of the Atlantic and no amount of Edwardian engineering could save the ship. One of the key lessons learnt from the Titanic tragedy was that there weren’t enough lifeboats for all the passengers. Today, we are in the midst of a Global crisis and potentially face a new breakdown in the established world order. Just as the death of Queen Victoria in January 1901 at the peak of the British Empire was followed by two World Wars and the emergence of the United States as the dominant Global Hegemonic Power, many commentators such as Paul Kennedy in his bestseller The Rise and Fall of Great Powers, are claiming that Global Hegemony is in the process of shifting. It is possible if not probable that even within our lifetimes, this power will shift east to China or India and just like the situation faced by Great Britain at the turn of the Twentieth Century there is nothing the United States can do about it. This time it isn’t Edwardian engineering that is failing to save us, but financial engineering. Of course nobody knows for sure how events will play out or if we are heading for a recession or even a depression.
Psychological research shows that people are systematically biased in their assessments of future events; not only will the future be good, it will be especially good for oneself in particular. All investors should have an understanding of risk based on an analysis of both their capacity for risk and their willingness to accept risk.
It is becoming clear that investors are currently paralysed by fear and finding it difficult to make rational decisions in the face of unprecedented turmoil in international markets. In this article, I will attempt to explore some of the issues that investors should be considering in the light of recent market volatility as shown below: Index Year to Date Return 31/12/07 to 14/03/08 Local Currency % Euro % US S&P 500 -12.3 -18.2 Europe FT/S&P Europe ex UK -16.5 -16.5 Ireland ISEQ -13.5 -13.5 UK FTSE 100 -12.8 -16.9 Japan Topix -19.1 -15.5 Hong Kong Hang Seng -20.1 -25.3 Bonds Merrill Lynch Euro over 5 year Govt 3.3 3.3 Credit Suisse/Tremont Hedge Fund Index 0.1% 0.1% Index Linked Bonds Euro Index Linked Fund 3.74 3.74 Source: Bloomberg
“Too much money chasing too few goods” – a basic, monetarist definition of inflation. In the long run, inflation is generally believed to be a monetary phenomenon, i.e. it is attributed to growth in the supply of money. While in the short and medium term it is influenced by the relative elasticity of wages, prices and interest rates. The question of whether the short-term effects last long enough to be important is the central topic of debate between the Monetarist and Keynesian schools.
Mark Twain said; “Buy land, they’re not making any more of it” One question I am repeatedly asked is this: “which is a better investment, Property or the Stockmarket”. As with so many things in life, the answer is “it depends”. I have to agree with Mark Twain’s observation. Land is a finite resource, and we live on an Island. You don’t need a PHD in stating the obvious to realise that an investment in land or property should, over time, appreciate. Property isn’t a bad investment.
And does it matter? The foundation of Modern Portfolio Theory was a 1952 paper, “Portfolio Selection” by Dr Harry Markowitz in which he established a theory explaining the best way for an investor to choose a portfolio. Modern Portfolio Theory is of such fundamental importance in investing that the economists that formulated the theory received the Nobel Prize in Economic Science in 1990. Asset allocation involves dividing an investment portfolio among different asset categories such as equities, commodities, fixed interest, cash, property and the process of establishing which mix of assets to use, is largely determined by investment objectives, time horizon and tolerance to risk.
Goldnomics Podcast - Gold, Stocks, Bitcoin in 2018. Everything Bubble Bursts? [iframe sandbox="allow-popups allow-same-origin allow-scripts" src="//player.blubrry.com/id/29580649/#time-0&darkOrLight-Light&shownotes-ffffff&shownotesBackground-444444&download-ffffff&downloadBackground-003366&subscribe-ffffff&subscribeBackground-fb8c00&share-ffffff&shareBackground-1976d2" width="300px" height="138px"] Press play to listen to podcast In this our first GoldNomics podcast we take a look at the major financial market themes[...]
Gold and Silver Bullion - News and Commentary Gold prices notch fifth week of gains in a row (MarketWatch.com) Gold notches 5th week of gains, palladium hits record (Reuters.com) London Housing Woe Endures as Prices Drop to 2 1/2-Year Low (Bloomberg.com)[...]
Gold and Silver Bullion - News and Commentary Bitcoin Heads to Bigger Wall Street Stage as CME Debuts Futures (Bloomberg.com) Bitcoin Hits New All-Time High At $19,659.50 (GoldSeek.com) The EU has signed a deal to integrate 23 armies (WeForum.org) Seasonally, January[...]