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MoneyWeek Issue 1024

MoneyWeek is a weekly magazine that enables you to become a better-informed, smarter investor and enjoy the rewards of managing your money with confidence. 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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United Kingdom
Dennis Publishing UK
51 Issues

in this issue

3 min.
from the editor-in-chief...

“Our optimism is based on our conviction in the long-term success of democratic capitalism” MoneyWeek was launched 20 years ago this week. It’s been quite a ride. Our first month was dominated by the disputed election in the US. Everyone expected Al Gore to beat George Bush. He didn’t – but that was only clear after a nasty row over vote counts in Florida and a month of legal battles (Gore sued). Since then we’ve covered the second part of the dotcom crash (at one point in 2000 the Nasdaq looked like it was stabilising – it wasn’t); the entry of China into the World Trade Organisation and the wave of globalisation and disinflation that followed; the ongoing collapse in bond yields (see page 4); the arrival of negative interest rates;…

1 min.
loser of the week

Johnny Depp (pictured) lost his libel case against The Sun this week after the judge ruled there was enough evidence to support the newspaper’s claim that Depp had physically assaulted ex-wife Amber Heard, says Ed Potton in The Times. Despite spending around £5m on the case so far, he is likely to appeal against the verdict. Depp claimed he had suffered “significant reputational damage” from The Sun’s claim, and his lawyers had said “only a very substantial award” would “compensate and vindicate” him, adds Sky News. He is pursuing a separate $50m defamation case in the US against Heard over an opinion piece she wrote for The Washington Post in 2018. ©Getty Images Coverillustration: Howard McWilliam. Photos: iStockphotos; Impossible Foods; Waymo…

1 min.
good week for

“Celebrity power couple” David and Victoria Beckham have allegedly signed a £16m deal for a Netflix series set to focus on David’s career and family life, says Lewis Knight in the Daily Mirror. Victoria and the couple’s four children will “feature prominently” and the series will apparently show a new side to the retired footballer (pictured) that “the public very rarely get to see”. The England Rugby team will receive £700,000 in bonus payments after landing the Six Nations title last weekend, says Chris Foy in the Daily Mail. It will be the Rugby Football Union’s final financial boost to the “triumphant squad” before pay cuts kick in as the coronavirus pandemic continues to squeeze the union’s income.…

1 min.
bad week for

Two men conned a doctor in northern India into purchasing “Aladdin’s lamp” for more than £70,000, going as far as conjuring a fake genie, says The Guardian. Laeek Khan went to the police after he tested the lamp and found it to have no magical powers, despite being promised health, wealth and good fortune. Two men have been arrested, but one man’s wife, also involved in the scam, is still on the run. An Egyptian man living in Kuwait has been forced to search a landfill site after he mistakenly threw away a bin bag filled with £20,000-worth of currency, says David Rose in The Times The man cashed in a cheque at the bank, shoved the cash into a bin bag, and took it home. Unfortunately, he then threw it…

8 min.
this could herald the biggest investment shift for the next 20 years

The most important trend for investors for the past 35 years, let alone the last 20, has been the slow but steady drop in interest rates to today’s record low levels. The bull market in bonds (when interest rates fall, bond prices rise) began in 1985. As Robin Wigglesworth writes in the Financial Times, the last bond bull market of comparable length ran from 1873 to 1909, and we’ve now almost surpassed that. This headwind of falling rates, more than anything else, has driven the extraordinarily strong returns seen across financial markets – both bonds and equities – in recent decades. Will it continue for the next 20 years, or does regime change lie ahead? “Few politicians illustrate shifting political views more clearly than Trump” We suspect the latter. We’re not the…

1 min.
■ the end of an era?

Looking back at asset markets over the past 160 years, analysts at Deutsche Bank have concluded that there have been five main “structural super-cycles” and that we’re entering a sixth – the “age of disorder” – right now. The chart on the left looks at how asset prices have performed during each of these eras. The blue line combines the valuations of 15 developed world bond and equity markets (100% shows assets are in their most expensive percentile and 0% the cheapest). The first era of globalisation ran from 1860 to 1914 and as the chart shows was a period of strong growth, low inflation, and strong asset-price growth. Then the turbulence of the world wars and the Great Depression came. Asset-price performance diverged, with several countries being afflicted either by…