ICR038: The Great Fall of China
This week in episode 38 of the Informed Choice Podcast, Martin talks about the Great Fall of China, signs you might be financially unstable and the ostrich effect when it comes to your financial health.
He also answers a listener question about investing in Investment Trusts.
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In the personal finance and investing new roundup this week:
-The number of people complaining about packaged bank accounts has risen dramatically.
-The government has sold more of its stake in Lloyds Bank.
-The number of new homes being built in England rose by 15 per cent in the year to June.
-Britain spends £4.5bn a year in coffee shops, with 1 in 3 adults visiting a coffee shop every week.
-Spain has topped the list of favourite overseas retirement hotspots.
Listener question
Our listener question this week comes from George, who emailed martin@icfp.co.uk with the following:
“My dad has told me that he has built up a lot of money by buying Investment Trusts. What are they exactly and should I be investing in them?”
If you have a personal finance or investment question, we would love to hear from you and have the opportunity to answer your question in a future episode of the show.
To leave your question as a voicemail, call 020 8144 2745 and record your message.
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Main topics
Global investment markets prompted panic on Monday after what has been called “The Great Fall of China”. China experienced its worst day of trading since 2007, with the main stock market index in Shanghai falling by 8.5%. Oil prices reached a six and a half year low of around $38 a barrel and stock markets globally also enjoyed a pretty sharp correction.
Are you financially unstable? Martin spotted an article from Business Insider, written by Jeff Rose, a CFP professional in the United States. This listed 21 warning signs that your financially unstable.
What is the ‘ostrich effect’ when it comes to your financial health? Kristen Wong writing on Lifehacker wrote a good article recently reporting on a study published in the Social Science Research Network. This said that researchers looked at the financial behavior of investors and found that when their returns were poor, they had a tendency to bury their head in the sand (hence, ostrich effect) and ignore the risk.
Useful links
Here are links to everything else Martin mentioned in episode 38 of the Informed Choice Podcast:
I’m a financial planner, and here are 21 ways I know you’re financially unstable
Beware the “Ostrich Effect” When It Comes to Your Financial Health
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