This week in MoneyWeek magazine, we take a closer look at what has sent the markets into a panic, says Ben Judge – and why it’s vital that you keep your head.
It’s been another wild ride on markets this week.
We’ve taken a much closer look at what’s been going on – focusing on China in particular – in the latest issue of MoneyWeek magazine.
But that’s far from all that’s in the issue this week. Investing is about the long-term after all – and editor-in-chief Merryn Somerset Webb reckons she’s spotted one of the best opportunities out there right now.
Here’s what’s in this week’s issue – if you’d like to grab a copy, you can subscribe right here.
Don’t panic about China’s market plunge
This week, we take a look at the plunge in the Chinese stockmarkets and in its currency, the yuan (renminbi). Both are scaring investors witless. But there’s no need to worry, says Andrew Van Sickle. China’s economy is looking solid. Things are improving in the short term, and the long-term transition away from an industrial economy to a services economy is on track. Make no mistake – there are likely to be unnerving times ahead – but investing is a long-term game. Right now, you shouldn’t panic – look for opportunity instead.
A fantastic buying opportunity
In her editor’s letter this week, Merryn Somerset Webb explains why now could be just the time to snap up some mining stocks. But not just any miners. Gold miners. That might sound crazy, given their performance over the last few years, (they’re down by just over 70%) but “that’s the kind of fall that often marks a bottom”, says Merryn. She takes a look at some of the best ways to play the sector here.
Invest in what you like – but do your research first
Buying a company because you like and know its products might well sound like an appealing investment strategy, says Matthew Partridge, but it’s not that simple. As expert investor Peter Lynch pointed out, you still need to do your homework. Matthew also looks at whether it’s worth buying shares that come with perks attached. There are “some potentially interesting offers” out there, he says – but should you ever buy shares for the perks alone?
Forget mergers, retailers have to get radical to survive
This week we’ve seen the usual Christmas high street drama unfold in retailers’ trading statements. But in the longer run, regardless of individual ups and downs, says Matthew Lynn, traditional retailers are in “deep trouble”. They’re facing fierce competition from online retailers such as Amazon, and from bricks-and-mortar rivals too. If they want to survive, they have to “get creative”. And that doesn’t mean yet another round of bids and mergers, as per Sainsbury’s buying Argos. What’s really needed is radical changes and unconventional strategies. It’s going to be risky – but there’s really no alternative.
Funds: active, passive – or the new third way?
In our funds section, Mischa Frankl-Duval explores the world of “factor investing” – a fast-growing sector of the industry presented as “a halfway choice between passive investing and active investing”. Fund behemoth Vanguard has launched a new line of products in the sector. But are they worth buying?
Natalie Stanton ponders the latest advice from RBS to “sell everything”. It might make good headlines, but is it sound advice? If you’re not convinced, she looks at what investments hold up best in a down market.
Lessons from a champion stockpicker
In her interview this week, Merryn picks the brains of “champion stockpicker” Craig Yeaman. Craig manages the £25m Saracen Growth Fund, which has been on the go for 17 years, and has beaten the UK market during 14 of them, producing an annualised return of 12.5%. Merryn finds out how he did it. It’ll come as no surprise that Craig puts it down to “good stockpicking”. But Merryn unpicks his strategy in a little more detail to learn the secrets of his success – and finds out what his favourite stocks are right now.
Outsourcing is here to stay – find out how to profit
Regular MoneyWeek contributor and former fund manager Jonathan Compton tells us why outsourcing – “paying someone to do something they can probably do better than you can” – is “the world’s greatest growth industry”. The rise of outsourcing has its roots in the Thatcher government of the 1980s, and it’s been exported around the world. And it’s not just governments that are contracting out non-core functions to cheaper specialists. It’s all the rage in business, too. The industry has had a few spectacular failures which have made it less than popular in some quarters, but it’s here to stay, says Jonathan. He looks at the best four stocks to buy now.
Robot advisers and when to retire
In an expanded personal finance section this week, Merryn explains why we’re looking forward to the days when financial advice is mostly provided by robots – providing better, cheaper service than their human counterparts. Meanwhile, in our pensions section, Sarah Moore looks at the lessons you can take from the controversy over the shift in women’s state pension age. It’s critical to know what you’re entitled to and when you’ll be able to claim it, she says.
In the back – getting away from it all
If you’re looking to get away from it all for a while, Chris Carter picks the best private island getaways, from Fiji’s Castaway Island with no TV or Wi-Fi, to the “preposterously pretty” exclusive North Island in the Seychelles, where guests are pampered by a small army of staff.
For a more permanent getaway, we showcase eight of the best homes available for £500,000, including an 18th-century cottage on the beach in Cornwall, to a contemporary property on 4.2 acres of coastal property in Nova Scotia.
There’s plenty more in the magazine this week, from a list of the biggest stock tips in the newspapers this week to an in-depth look at the Saudi economy. you can subscribe right here.