Podcast Summary
LinkedIn: A Wide Pool of Professional Candidates: Small businesses can access a large pool of potential candidates by posting jobs on LinkedIn, as over 70% of its users don't visit other leading job sites.
LinkedIn is a valuable resource for finding professional candidates for small businesses, as over 70% of its users don't visit other leading job sites. Sandra, the speaker, emphasizes that she was not found through other means and encourages businesses to post their jobs on LinkedIn to access a wider pool of potential candidates. Additionally, the FT Money Show discussed the Bank of England's decision to keep interest rates unchanged, but noted that some borrowing rates are still increasing and savings rates are falling. This is due to the cumulative effect of previous rate increases, even though no new increase was expected. Another topic covered on the show was the importance of individualized comfort in sleep, with the Sleep Number Smart Bed being highlighted as a solution for couples with different sleep preferences. Lastly, the show touched upon ethical investment, looking at how to determine if one's money has been invested in Burma, and the pros and cons of cashback cards.
Impact of market timing on investor returns: Misaligned investment and market conditions can result in investors earning less than stated total returns of a fund, highlighting the importance of considering market timing and investor returns for accurate performance evaluation.
The timing of investments in funds can significantly impact performance, and many investors, including professionals, often get their market timing wrong. According to Morningstar, a US research company, this misalignment between investment and market conditions can result in investors earning less than the stated total return of a fund. Investor returns, a metric used by Morningstar, takes into account cash inflows and outflows to provide a more accurate representation of a typical investor's experience. By factoring in monthly returns and cash flows, investor returns provide valuable insights into the actual returns earned by investors in a fund, revealing potential discrepancies between stated total returns and real-life investor experiences. In essence, investor returns emphasize the importance of considering market conditions and the timing of investments when evaluating the potential performance of a fund.
Investors may not earn returns matching total fund returns: Investors in volatile sectors or funds may experience negative returns despite positive total fund returns, emphasizing the importance of focusing on long-term goals and risk tolerance over market timing.
Investors in funds may not earn returns that match the stated total returns, especially in volatile sectors or funds. This was highlighted in the discussion with an example of an aggressive growth fund in the US, where the 10-year total return was 15.6%, but the investor return was over negative 1%. The research indicates that this phenomenon is common, with more volatile sectors and funds displaying larger negative gaps between investor returns and total returns. The reason for this is that investors tend to buy in late during market rallies and sell at the wrong time during market downturns. Even professional fund managers struggle with market timing. The lesson here is that investors should avoid making decisions based on past performance and instead focus on their long-term investment goals and risk tolerance.
Consider long-term goals and risk tolerances before investing: Avoid hasty investment decisions based on temporary trends to prevent costly consequences and maintain long-term strategies
Investors should consider their long-term goals and risk tolerances before choosing an investment program and avoid jumping on bandwagon funds. The consequences of making hasty decisions can be costly. According to Chris Trollson of Morningstar, the US examples of the TMT rally and the fascination with emerging markets in China serve as reminders. Not only do investors suffer, but fund management firms that release unstable or reactive funds also face negative consequences, as evidenced by their bottom lines. Funds with the largest negative gaps in investor returns have experienced significant outflows, while stable firms like American Funds, Vanguard, and Fidelity have had strong inflows. Ultimately, it's crucial for investors to stick to their long-term strategies and avoid being swayed by temporary trends.
Ensuring Ethical Alignment in Investing: Large ethical funds have multiple layers of oversight, smaller ones rely on fund manager's ethics, and investors can engage for change.
Ethical investing involves various levels of scrutiny to avoid companies with poor human rights records. Ethical fund managers are generally aware of political events in regions with such issues, but the ability to react quickly depends on the size and governance structure of the fund. Large houses have multiple levels of oversight, including ethical committees, boards, and corporate governance teams, while smaller houses may rely more on the fund manager's ethical brief and screen. Individual investors also play a role by engaging with the fund manager and agitating for change. Polling clients and considering their feedback is another way for funds to stay ethical and responsive to investor concerns. A case was mentioned where an investor discovered a subsidiary company involved in animal testing, which led to the stock being sold immediately. Ethical investing involves a collaborative effort between various stakeholders to ensure that the company's ethical policies align with the values and expectations of the investors.
Transparency in Burmese investments is improving but investors need to do their own research: Investors should conduct their own research on individual stocks despite receiving annual reports and polls from larger houses, and consider saving money instead of using cashback cards for better returns.
Transparency in Burmese investments is improving, but investors still need to do their own research. According to Andrew Wilson, head of investment at TowerJ S and P, investors receive annual fund manager reports with a list of stocks, and larger houses may poll them on policy changes. However, investors can and should conduct their own research on individual stocks. Meanwhile, cashback cards may seem like a great deal with their promise of returning a percentage of spending as cashback, but applying for a 0% interest rate card and saving the money instead could result in a better return. With savings rates falling, it's important for listeners to act quickly on financial products. Overall, staying informed and being proactive are key to making the most of your money.
Celebrating life's special moments with love and care: 1800 Flowers creates high-quality gifts with love and care, focusing on connecting with loved ones and creating cherished memories.
1800flowers.com is not just a go-to destination for gifting on special occasions like birthdays or anniversaries. Instead, it's a place where love, care, and attention to detail are put into every product and service offered. From the farmers and bakers, to the florists and makers, everything is created with love and care to help you celebrate all life's special moments with friends and family. 1800 Flowers understands that delivering a smile is important, and they strive to do so every step of the way. Whether it's a gift for a loved one or for yourself, the team at 1800 Flowers ensures that each item is made with love and care, reflecting the importance of connecting with loved ones and creating cherished memories. To learn more about 1800 Flowers and their mission, visit their website at 1800flowers.com/acast.
