About Nicholas Grogan

Some believe they need to invest in more complex financial instruments to get higher returns. However, it’s important to evaluate whether these investments are necessary and will help you achieve your financial goals. What are complex investments? Complex investments are financial instruments that are more intricate in nature, come with higher risks, increased costs, and

When providing investment advice, we may discuss the idea of home bias and its potential impact. Home bias describes the tendency for investors to put a larger portion of their portfolio into assets within their own country, like stocks and bonds. For example, a UK investor with a home bias would have a higher percentage

Factor investing is a specific way to approach investing. This approach targets specific drivers of returns across asset classes and can help improve returns and enhance diversification. How does factor investing differ from traditional investing? When looking at investing styles, there are two ends of the spectrum. At one end, you have purely active managers.

We tell our clients that investing is risky. However, it is during bear markets that this becomes real. Like most fears, the best way to deal with them is to understand them, know your options, and be confident that they will pass. What is a bear market? A bear market occurs when the value of

You might not be interested or feel comfortable in choosing where your retirement savings are invested. If this is the case, then it is likely you have the money in your pension invested into the provider’s default pension fund. We are never going to criticise providers for making it easier for people to invest their

We have previously covered the effect that inflation might have on your financial plan. However, you might also worry about its effect on your portfolio. Most of us invest to fund future spending. If the stuff you intend to spend that money on gets more expensive and you still want to buy it, you must

Economic growth Signs of slower growth than some had originally expected, amid supply constraints and a Covid-19 resurgence, have led to lower growth forecasts for the United States. Expectations are that the US should reach its pre-pandemic growth trend in the first quarter of 2022, rather than late 2021. Across the euro area, hospitalisations appear to have

There are a few levels on which maintenance occurs. The start of anything we do is to review the latest research and evidence. We then decide whether we need to make changes to any of our processes. This ensures they prudently reflect the latest thinking. When we say the latest thinking, we do not mean

Your portfolio represents your future. It is only natural to want to check how your investments are doing. How often you need to do this depends on the type of investor you are. Speculators who constantly buy and sell individual stocks will monitor performance frequently, perhaps daily. Those investing for the long term with robust

In today’s markets, bond yields are low and those of high-quality bonds are the lowest. In addition, they could quite feasibly crash too with interest rate rises. So why have bonds in a portfolio? It is quite straightforward. Imagine you only hold equities with a portfolio of £200,000. The economy takes a turn for the

The second quarter of 2021 has seen most major markets continue on an upward path. For once, the UK, as measured by the FTSE 100 was not the laggard, as that prize went to Japan. However, in Q2 the FTSE 100 was still behind the overall global equity performance of 6.8% in sterling terms. This

There is no doubt buy-to-let residential property has been profitable for some. However, it is not without considerable risks. These risks include increasing taxes, rent arrears, voids, dilapidations and many more. Any landlord effectively needs to run a small business. There is also the misconception that residential property only ever goes up in value. When

What is an equity (or share)? An equity (or share) represents ownership of part of a company. This gives you a right to your share of any dividends paid and a claim on the company’s assets. Returns from equities come from changes in the price of the shares and dividends paid out. Are all equities

This may seem an obvious question with an obvious answer. In some ways it is. We believe investing to be the means of building wealth to fund lifestyle and personal choices. It is a slow, emotional, and sometimes painful process requiring a robust plan, patiently executed over many years. Anyone hoping to get rich quick

Equity markets have had a much quieter first three months in 2021 than they did last year. The FTSE 100 appears to remain a laggard, but that ignores the recent strength of sterling. Similarly, the standout 10.3% rise of the Euro Stoxx 50 drops to 2.1% when we factor in the decline in the Euro.

The number of underperforming, or “dog”, funds has risen by a third this year, new data has shown. This is partly due to the gulf between the performance of different styles of investing. The pandemic has exacerbated this, but value and income investing have lagged behind growth investing for a while. How bad could having

The Covid-19 pandemic has produced the most pronounced economic shock in nearly a century. In 2020, recessions around the world were sharp and deep, with significant supply-chain disruptions at times. That said, perhaps more than in previous recessions, policymakers were aggressive in supporting financial markets and their economies. While the global economy continues to recover

We have written a post previously about focusing on income when investing. I wanted to go into some of the evidence behind focusing on income when investing not being the best strategy. When looking at this, there is probably no more famous theory in Finance than Modigliani/Miller. Known as the Dividend Irrelevance Hypothesis it says investors should not worry about

Market conditions change all the time. Investors may wonder if they should change the composition of their portfolios to reflect this. How could I change the level of risk my portfolio takes? The portfolios we build for our clients align to ten risk profiles. These range from investing purely in cash to more speculative investments

It is always important to manage expectations when investing. We often get questions about whether there is an explicit time someone must invest for how accessible the money is. How long do I have to invest for? If you are investing in an investment account or an ISA, then technically you could invest the money

Many investors are worried about the US election’s effect on the stock market. One school of thought is a Biden victory could lead to measures that would hit businesses. Another asserts the stock market prefers Republican victories. What does the data say? The logic of efficient markets is that anticipated events do not impact prices.

The pace of the global economic recovery from the Covid-19 pandemic appears uneven. Recent US economic data has been at the optimistic end of expectations. However, activity in the UK, where Brexit looms large again, has lagged forecasts. The risks of a second Covid-19 wave (and, potentially, more severe lockdowns) are growing. But so too

National Savings & Investments has significantly cut the rates it offers to savers. Savings analysts have long kept one eye on NS&I’s next move. The bank helps to fund the Government’s spending, so it has to balance the rates paid to savers with the cost to the Treasury. NS&I had planned cuts earlier this year.

The Financial Conduct Authority (FCA) is floating the idea of new rules designed to improve investor experiences in open-ended UK Commercial Property Funds. Most are currently suspended due to uncertainties on the value of the properties because of the COVID pandemic. In the past, they have placed restrictions on withdrawals due to a lack of

Investing for the financial future of children and grandchildren are key areas of concern for parents and grandparents. This can be for various reasons including funding education or helping them to buy a house in the future. There are special rules to consider when investments are made for the benefit of, or on behalf of,

This month has some welcome positive news. There was an increased likelihood of economic growth picking up in China as early as the second quarter. While economies are recovering in many parts of the world, they are a long way from where they would have been in the absence of Covid-19. Predictions are that global