Wealth News Letter – Autumn 2020

Posted on 09 October, 2020

Farewell cash – my old friend

Without doubt, the pandemic has accelerated the trend toward a cashless society, with both credit and debit card usage soaring and “sorry, we don’t accept cash” becoming a well-versed refrain in shops, as fears increased that handling cash could accelerate the spread of the virus. The maximum contactless spend was increased from £30 to £45 on 1 April to facilitate this. Recent data shows that 66% of Mastercard transactions in the UK are now contactless and 45% of people responding say that they have used cash less during the crisis…..

COVID – a true black swan event?

The severity of the impact of the pandemic on economies and societies around the globe has been overwhelming; it seems not one person has been free of its force. However, critics are unrelenting in their claims that the ramifications could (and should) have been anticipated. Does this make COVID-19 qualify as a ‘black swan’ event? As devised by financial theorist and writer Nassim Nicholas Taleb, the expression ‘black swan’ denotes any event that is extremely rare, has a severe impact and cannot be predicted, although after the event, people will rationalise it as predictable. The term is based on an ancient saying that assumed black swans do not exist…..

Be on your best investor behaviour

It’s all too easy to let emotions influence investment decisions in times of market volatility. After all, it’s human instinct to be responsive, but resisting the urge to take flight can prove rewarding. Take it back a few million years to prehistoric times; the fight or flight reaction meant the difference between life and death, survival depended on decisive action. As an investor, controlling these hardwired behavioural biases and resisting the urge to panic, can prove beneficial…..

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