Wisdom of old can be bad for your wealth

Article Abstract:

Gilt-edged stock has been at least as good an investment as shares in the 1990s, in sharp contrast with earlier decades of the 20th century. An assessment of historical data indicates that an optimal investment portfolio should be made up entirely of shares, but those considering future investment strategies should be aware that investing in shares is now considerably more risky than investing in gilts. The War Loan, which now trades at 76p in the pound, showed particularly impressive performance among gilts in 1998.

Author: Davis, Jo
Government Bonds, Analysis, Government securities

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Shares with appeal for private investors

Article Abstract:

Private investors establishing a share portfolio should have blue chips, mid caps, small caps and adventure shares. It is worth considering a modest investment in the shares of companies in the drug and telecommunications sectors, and a balanced portfolio should also include the shares of an electronics group and a utility. Investors should remember that selling shares is just as important as buying them, and should avoid retaining shares in badly-performing companies purely for sentimental reasons.

Author: Pain, Derek

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Money and madness go hand in hand

Article Abstract:

Investors often display an irrational attitude towards money and the balances between risk and return, according to research undertaken by behavioural scientists. It has become clear that clients of fund managers do not always seek logic, reason and consistency. Instead, they look for prestige, low volatility, convenience and active packaging. Investors are often dissatisfied if they reach their goals by a route which differs from the one they had anticipated.

Author: Davis, Jo
Strategy & planning, Psychological aspects, Beliefs, opinions and attitudes, Investors

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Subjects list: United Kingdom, Management, Personal finance, Column, Investments
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