It’s been another thrilling week in the markets. Stocks officially hit bear territory, in the UK at least.
Oil just keeps getting cheaper, too. In this week’s issue of MoneyWeek magazine, Alex Williams explains what’s driving oil’s slide, and how to profit from it.
Meanwhile, Merryn Somerset Webb casts a critical eye over the current pensions regime – we liked pensions freedom, but we’re not so keen on George Osborne’s new big idea. And she talks over one of our favourite markets – Japan – with Simon Somerville of Jupiter.
Here’s what’s in this week’s issue – to get your copy, you can subscribe right here…
Profit from the biggest oil price crash in 30 years
One of the main drivers of the current market selloff is the continuing slide in the price of oil. Vast global oversupply has caused the worst price crash of the last 30 years – petrol looks like it’ll soon be cheaper than bottled water in the UK (it already is in India).
Investors have taken it hard. But, says Alex Williams, our writer on all things commodities, it’s actually good news for pretty much everyone except oil producers and exporters. In his cover story this week he looks at the reasons for the collapse, and explains what you should buy to profit from oil’s nosedive.
Japan’s never been good for income investors – until now
Traditionally, Japanese firms have tended not to care too much about their shareholders, and dividends have been hard to come by. But times are changing.
Merryn’s interview this week is with fund manager Simon Somerville. Simon’s been investing in Japan for over 20 years, so he should know what he’s talking about.
Japan’s firms are sitting on big piles of cash, says Simon, and new rules mean they’re going to have to pay a lot more of it out. Add to that low oil prices, and a boom in tourists from China, and Simon reckons it should be a good year for investors in Japan.
A simple, balanced portfolio to thrive in troubled times
2016 looks like it could be a tough year, says David C Stevenson. That’s why you need to be prepared for all eventualities with a diversified portfolio. He explains how to put together a simple, no-nonsense collection of funds from scratch. He builds a traditional 60/40 equities/bonds portfolio with just six ETFs – it’s cheap, low hassle and well worth checking out.
What’s the point of pensions freedom?
When chancellor George Osborne announced his raft of changes to the pensions system, we were impressed, write Merryn Somerset Webb. We love the idea of everyone making their own decision about their money. But Osborne’s subsequent tinkering has made it a lot tougher to build up a meaningful pot to manage.
And there’s more tinkering to come, warns Natalie Stanton. Higher rate taxpayers should look at how much they can afford to put away before it’s too late.
(For more on pensions freedom, sign up for a MoneyWeek subscription now – we’re giving away a comprehensive guide to the changes right now as part of the package).
Free banking, the herd mentality and the burden of taxes
Elsewhere, Simon Wilson weighs up the pros and cons of abolishing the Bank of England and replacing it with a system of “free banking”. After all, the free market could hardly do a worse job of things than the world’s central banks.
Matthew Partridge looks at how investors move in herds, and where it’s stampeding to now.
And Matthew Lynn looks at the EU-wide tax burden and concludes that even though taxes are rising, we’re a lot better off than our European neighbours.
There’s loads more, including a roundup of hot hatches in our cars section, eight bargain properties on the market, and five of the best hotels set to open this year.
By the way, if you’ve been planning to subscribe but not acted on it yet, I’d suggest doing it quickly. We’re running a special offer just now where we’ve put together a pack of special reports especially for investors who are determined to take control of their finances in 2016. But it won’t run for much longer – so sign up for a MoneyWeek subscription now.