Global equities have seen a remarkable upturn with 15%+ gains over the last two months alone. This followed the prior sell-off related to economic uncertainty.
Whilst those fears are still alive, equities have enjoyed a mini bull-market of late. That doesn’t necessarily mean the end of volatility – it’s possible there might be some profit taking after the strong gains.
Either way, there’s an amazing little-known fact about global equities:
In good times you make positive returns – BUT your losses are limited during uncertainty. Global equities include in-built protection to limit our losses.
Sounds amazing right? Here’s a simple and real example:
US equities are down 14% this year. But, US equity ETFs in the UK are actually flat, or slightly UP (as of 28 Aug 2022) How is that? Keep reading, I explain below.
Despite this year’s volatility, my own portfolio has made POSITIVE returns – with many ETFs being up, plus INCOME via Options and Dividends. No hassle and Tax-free – unlike my property portfolio.
We teach how to create a GROWTH + INCOME portfolio in the forthcoming investment academy (see below).
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Stop Press: the next Investment Academy starts 6th Sept
Step-by-Step LIVE training to create your Diversified, Low-Cost, Inflation-Beating, Growth and Income Portfolio with ETFs and Options.
Popular with property investors seeking to diversify wealth with hassle-free growth and low-tax income. For SSAS, SIPP, ISA & Cash investors
Click here for more info
LIMITED TIME 20%-off discount: use coupon code AUG20. Only valid until 31st Aug.
Investment Academy – Pro-Grade Content includes:
- Low-cost ETFs and funds – selecting using Pro-tools
- Platform selection and DD for Pensions and ISAs
- Options-investing to create a regular income stream
- Pro-grade Company and Stock analysis
- High-dividend stock selection
- Tax-efficient investing via SSAS, SIPPs, ISAs
- Fee-efficient investing – save £,000s every single year
- Due Diligence on Loan opportunities
- Lifetime ongoing support in private Facebook group
Click here for more info
LIMITED TIME 20%-off discount: use coupon code AUG20. Only valid until 31st Aug.
Starts: Tuesday 6th Sept – for 6 weeks
Format: Online Live classes at 6pm on Tuesdays (All classes recorded for catch-up if you miss any)
Plus, structured online training in between live classes.
FAQs on the Investment Academy: see below
Back to the Analysis: How Global equities lower your downside
When investing in global equities, you also obtain exposure to global currencies. When you think about it, buying US shares makes you the owner of US-dollar assets. The currency exposure you end up having provides a hedge against volatility.
How? Sterling is a “risk-off” currency which means that during periods of stress, Sterling tends to depreciate. You can see that in the chart below where: Sterling declined during the global financial crisis in 2008, after the Brexit referendum vote in 2016 and, recently, during the current period of inflation and recession concerns (it also sold off sharply during the Covid crash of 2020).
When sterling depreciates that equates to an appreciation in foreign currencies vs the pound. In turn, that provides a boost to the value of our global equity holdings.
Take the current period when the pound has declined from $1.35 to $1.17 between the start of the year and now. This depreciation has provided a boost in the value of foreign equity holdings by around 14%, serving to cushion the decline in equities .
In other words, investing in global equities acts as a volatility hedge for UK-based investors. That makes global equities a highly attractive asset class – especially for property investors seeking diversification in a more passive and tax-free way.
For more aha-moments like this – plus many others – join our forthcoming investment academy starting 6th September.
Limited Places – Secure Your Place Now
FAQs on the Investment Academy …
– Apart from options are there any other income strategies in the programme?
Yes, there’s a whole module on screening for high dividend stocks – how to find solid blue-chip stocks that have sustainable yields of 5-8% pa typically
– I’ll be away for some of the course – will classes be recorded for catch-up?
Every live class and module is recorded and can be accessed anytime for easy catch-up.
– Can my SSAS pay for the training? (Or Ltd Company)
Yes. Many attendees in our previous programme had the cost paid for by their SSAS. The easiest thing is to initially pay using your own credit card and then provide a Recharge Invoice to your SSAS administrator who can arrange for the SSAS to reimburse you (we will provide you a Recharge Invoice template). Alternatively, many attendees have paid via their Ltd company.
– After completing the programme what ongoing support is there?
We have a private Facebook group for past and present attendees only. This is an active group where you can ask for guidance on any of the training elements or other investment related issues.
– is there other content apart from financial markets?
We have an entire module on property-related loans and P2P platforms — how to select safer opportunities by using our due diligence framework and avoiding the red flags (more info in the email copied below)
** Your Capital is at Risk ** This is not investment advice.
Investment Academy Programme – Further Info
Starts: Tuesday 6th Sept – for 6 weeks
Format: Online Live classes (All classes recorded for catch-up if you miss any)
What you’ll learn on the Investment Academy
- How to correctly invest in: Shares, ETFs, Funds, Options … passively and with low complexity and maintenance
- How to minimise fees in low-cost ETFs
- How to select the best, cost-efficient platforms
- My Option Strategy and process used for passive income
- Selecting higher dividend-yielding stocks
- How to shelter your gains and dividends via tax-efficient wrappers such as ISAs, SIPPs and SSAS
- The inside track on how the pros generate returns and, more importantly, what they never do
- Investors come away fully equipped with professional-grade tools and techniques to identify shares and ETFs with the best returns v risk
- New Bonus Module: Due Diligence on Secured Loans – Selecting SECURE deals, identifying red flags
- Learn strategies that benefit from incredible compounding to secure your long-term financial future
- Discover ways to protect your portfolio from inflation – and beat it
- Live demos on finding the right ETFs, Funds, Shares and Options
- Understand how to identify and minimise hidden fees in funds and platforms
- You’ll come away a confident investor without ever needing a financial advisor – hence saving yourself £ thousands in unnecessary fees
- The programme provides all the knowledge and tools you’ll need for a lifetime of successful investing – exactly replicating the strategies used by Manish himself
- The full programme is delivered by professional fund manager, Manish Kataria
- Full live support for your strategy throughout the programme
- Access to private Facebook group with ongoing support
Can my SSAS pay for the training?
Yes. Many attendees in our previous programme had the cost paid for by their SSAS. The easiest thing is to initially pay using your own credit card and then provide a Recharge Invoice to your SSAS administrator who can arrange for the SSAS to reimburse you (we will provide you a Recharge Invoice template).
