News & Politics


Issue 1021

There's a reason MoneyWeek is Britain's best-selling financial magazine. We exist to help you ground your portfolio so that it keeps your money safe during rough patches and growing in the good times. We don't just look at how to maximise your returns and limit your losses, we also like to look at how you can keep more of the money you've made. Week-in, week-out we'll guide you through the financial world as it changes, alerting you to all the opportunities to profit and dangers to avoid, as they appear. Income strategies, rising-star companies, the best funds and trusts, clever ways to preserve your wealth during market turmoil... you will get the best ideas from the sharpest financial minds and investing professionals in Britain.

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51 Issues

in this issue

1 min.
betting on politics

Despite Joe Biden’s commanding poll leads (see main story), the betting exchanges seem to be largely unchanged in their assessment that Trump, although likely to lose, still has a significant chance of victory. With £128m now matched on Betfair, Biden’s odds are only slightly shorter at 1.5 (66%) than President Trump’s at three (33%). SpreadEx has slightly increased its spreads on Biden’s electoral college votes to 320-330, with Trump down to 208-216. Rival spread-betting firm Sporting Index is slightly less bullish on Biden (pictured), putting the spreads on his electoral college votes at 318-324. My view is that it is very hard to see how Trump can win, although obviously it is not impossible. He has a hard core of supporters, but a majority of people dislike him, making a last-minute…

4 min.
best of the blogs

What Xi has been smoking unherd.com The Chinese Communist Party (CCP) is fond of invoking the First Opium War, says Bill Hayton. The conflict, which ran from 1839 to 1842, is taken to mark the start of China’s “century of national humiliation” that ended when the communists came to power in 1949. In Britain it is often remembered as a case of the Empire forcing “an illegal and immoral drug” upon the Chinese people. The reality is more complex. Various British merchant interests – not just opium sellers – were pushing for an end to China’s restrictions on trade. China’s imperial Qing state had been weakened by food shortages, the result of a population boom. Turmoil in Latin America meant that silver coinage was also scarce, compounding the economic problems. The imperial court…

1 min.
short positions... go further for income

Investors in UK equity income funds are suffering a “double whammy” of reduced dividends and little or no capital growth, says Mark Atherton in The Times. In the five years to the start of October, UK income funds have produced an average total return – dividends plus capital gains –of just 3.1%. More than half have lost money. The situation’s no better with income investment trusts: many large trusts with “a lot of loyal investors” have posted double-digit losses. This isn’t just due to coronavirus – these funds are “dependent on old industries that may have limited prospects, such as oil, gas and financials”. It’s time to look more widely. Global income funds have returned 54.7% over five years, led by the Baillie Gifford Global Income Growth fund (88.1%). Infrastructure…

2 min.
the stocks and funds to consider now

Biden’s plans for reducing carbon emissions, “which go further than any previous Democratic presidential hopeful”, says Whitney Voûte of the US Solar Fund, should help renewable-energy stocks. They have already ticked up in anticipation of his victory. The iShares Global Clean Energy UCITS ETF USD (LSE: INRG) is an exchange-traded fund (ETF) that tracks the S&P Global Clean Energy index. It invests in 30 large renewable-energy companies, roughly half of which are headquartered in the US. The two biggest holdings are Sunrun, a California-based residential solar power, and SolarEdge, an American firm working with Tesla Motors to produce cheap battery storage for residential solar panels. The only downside is that the ETF has a trailing price/ earnings (p/e) ratio of 32. The fund has an ongoing charge of 0.65% a year. If you…