Podcast Summary
LinkedIn: A Valuable Tool for Small Business Hiring: LinkedIn offers access to a large pool of potential candidates and is an invaluable resource for small businesses looking to hire top talent. The misconception of 'free banking' was also discussed, revealing that some banks charge significant fees for certain services.
LinkedIn is an essential platform for small businesses looking to hire professionals. It offers access to a large pool of potential candidates who may not be actively searching for new jobs but could be open to the right opportunity. In contrast, over 70% of LinkedIn users don't visit other leading job sites. This makes LinkedIn an invaluable resource for businesses looking to hire top talent. Another topic discussed was the concept of "free banking." While the idea of free current accounts has been around for decades, a new report revealed that some banks charge customers up to £900 a year through fees for going overdrawn or taking out money abroad. This goes against the notion of free banking and highlights the importance of being aware of the true costs associated with banking services. So, in summary, LinkedIn is a valuable tool for small businesses looking to hire professionals, and the concept of "free banking" may not be as straightforward as it seems.
Free vs. Charged Current Accounts in the UK: While some UK current accounts offer free banking with authorized overdrafts, others charge significant fees for unauthorized usage. Individuals should consider their banking habits and potential costs to choose the best option.
While some UK current accounts offer free banking with no charges for authorized overdrafts up to a certain amount, others impose significant fees for unauthorized overdraft usage. For instance, the Coventry Building Society and First Direct offer free authorized overdrafts up to £200. However, Halifax's reward current account charges £120 annually for unauthorized overdraft usage. There are ongoing debates about whether free banking should continue or if everyone should pay for their current accounts. Some argue that paying a few pounds a month might be better as it eliminates constant pressure from banks to sell additional products. Ultimately, the decision depends on individual banking habits and the potential costs of different account options. It's essential to be aware of the fees and charges associated with your current account and manage your finances accordingly.
Mega caps as safe havens during market volatility: Mega caps, large, stable companies, provide relative safety during market volatility due to their size, maturity, international presence, and strong free cash flow, but no investment is risk-free, and extreme market conditions may require safer havens outside of equities.
That mega cap stocks, which are the largest stocks based on market capitalization and typically include well-known household names, can serve as relative safe havens during volatile market conditions. These companies, due to their size, maturity, international presence, and strong free cash flow, tend to be more stable and better positioned to sustain dividend payments compared to smaller mid-cap companies. However, it's important to note that no investment is completely risk-free, and in extreme market conditions, investors may want to consider safer havens outside of equities, such as cash, gold, or government bonds. Despite the recent equity market bounce, some advisers still anticipate market volatility in the short term, leading to renewed interest in mega caps as potential safe havens.
Consider Alternative Investments for Long-Term Protection Against Inflation: Long-term investors should look beyond traditional investments like cash, bonds, and gold for protection against inflation. Consider alternatives like inflation-linked bonds, equities, commodities, and short-duration corporate bonds.
Traditional investments like cash, government bonds, and gold may not be the best options for long-term investors due to low returns or potential risks. Instead, investors should consider alternatives like inflation-linked bonds, equities, commodities, and even short-duration corporate bonds as potential hedges against inflation. With the increasing government debt and potential for more quantitative easing, inflation could be a significant concern. Infrastructure investments, primarily through listed investment companies, could also serve as relatively safe havens due to their long-duration nature and government backing.
Consider current earnings and yields when investing: Investors should evaluate current financial data and yields before making investment decisions, rather than relying solely on future potential. Be cautious of investment banks' pricing of new issues and be aware of small exchange market sizes that can impact buying or selling large sums of shares.
Not all investments, even those that are well-known or currently popular, are good bets. Tanya and Jason discussed the importance of considering current earnings and yields, rather than future potential, when making investment decisions. They also cautioned against relying too heavily on investment banks to accurately price new issues. Additionally, they discussed the issue of small exchange market sizes for some investment trusts, which can make it difficult for investors to buy or sell large sums of shares. For example, the Invesco Perpetual Select UK Fund may present challenges for investors looking to invest substantial sums. Overall, it's crucial to carefully consider the specific details of each investment opportunity before making a decision.
Perception of Difficulty in Trading Investment Trusts: Investment trusts are perceived as hard to buy and sell due to low market caps and limited daily trading volumes, but their long-term focus and similarities to other companies make them worth considering, despite their infrequent trading.
Investment trusts, despite their potential long-term benefits, are often perceived as difficult to buy and sell due to their relatively low market caps and limited daily trading volumes. This perception may deter some investors, particularly those in the retail space. However, investment trusts are designed for long-term holding, and their infrequent trading is not necessarily a cause for concern. Instead, it's important to remember that investment trusts function similarly to any other company on the stock market, with larger companies experiencing frequent buying and selling activity. The dominance of unit trusts and other open-ended funds in the market is not solely due to liquidity issues, but also because of their easier launch process, incentives for advisers, and wider availability on platforms. The end of commission sales at the end of the year may not lead to a sudden rush of investment trust buying, but rather a gradual increase in interest over time.
Moderate market growth and flexibility in life: Expect moderate market growth, stay flexible with financial planning and insurance coverage, and consider thoughtful and budget-friendly gift-giving options.
The speaker expresses a positive outlook on the market's growth, but expects it to progress at a moderate pace. The discussion also touched upon the importance of flexibility in various aspects of life, including financial planning and insurance coverage. The speaker highlighted the benefits of UnitedHealthcare Insurance Plans, which offer flexible and budget-friendly coverage options. Additionally, the importance of thoughtful gift-giving was emphasized, with the speaker sharing their personal experience of using Celebrations Passport from 1800flowers.com for finding amazing gifts for every occasion, with the added perk of free shipping and rewards. Overall, the conversation encouraged listeners to be flexible and plan ahead in their personal and financial lives.
