Image source: Getty Images The BP (LSE: BP) share price is an unpredictable beast. Even more than most stocks, I have no idea where it might go next. So I decided to hand over the job to artificial intelligence (AI) and asked ChatGPT where it thought the shares would stand at the end of this decade. Even though large-language models can hallucinate, and basically feed on the work of others, I was curious to see what it would come up with. I’d use its output as a springboard for my own research, and not take the results too seriously. Today,…
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Many UK investors seeking exposure to booming tech stocks during the pandemic were left nursing losses after Scottish Mortgage Investment Trust (LSE:SMT) shares tanked in late 2021/early 2022. It lost more than half of its value from peak to trough. Simply put, the investment trust invests in companies and its value reflects the value of the companies held within its portfolio. In 2021/2022, the bubble burst and stocks came tumbling down from sky-high valuations. However, Scottish Mortgage stock remained depressed for some time following the pullback. In fact, rather tellingly, the trust went from trading at a premium to its…
Liability-Driven Investing (LDI) is often associated with developed markets, where deep liquidity and a wide range of derivatives allow investors to hedge with precision and meet long-term obligations confidently. Products such as inflation-linked securities, interest rate swaps, and long-duration corporate bonds make it easier to align portfolios with actuarial forecasts and regulatory requirements. In frontier and emerging markets, however, the same philosophy operates under tighter constraints. When market depth is limited and policy shocks are frequent, as in Nigeria, LDI becomes less about instruments and more about discipline. It relies on timing, currency alignment, and interest rate sensitivity rather than…
Image source: Getty Images I like buying UK stocks when they’re down in the dumps. The aim is to buy them cheaply, lock into a higher dividend yield, then sit back and wait for the recovery. It’s not a failsafe strategy though. Share prices don’t fall for no reason. Sales and profits may have dropped, demand might be weak, or a competitor may be challenging for market share. These three FTSE 100 names have all fallen exactly 30% in the past year. Are they worth considering as a result? JD Sports Fashion disaster JD Sports (LSE: JD) styles itself the…
Image source: Getty Images The Fresnillo (LSE: FRES) share price has been on a rollercoaster ride lately. After gold and silver prices cratered over the past few days, the stock collapsed over 20%. Today, (22 October) the FTSE 100 precious metals miner rallied a little in early trading as investors weighed up whether recent weakness had gone too far. So, with silver prices still hovering near $50, where next for the stock? Pullback Every time I have put pen to paper on this one, I have warned investors that a pullback was coming. But timing such a move is, of…
Image source: Getty Images Warren Buffett’s approach to investing involves focusing on quality companies that are out of favour. With stocks close to record highs, I’m looking to do something similar. Just over a decade ago, his investment vehicle, Berkshire Hathaway, bought a big stake in farm equipment firm John Deere in an agricultural downturn. And my latest idea is along these lines. Buffett’s investment Between 2012 and 2016, Berkshire bought just over 7% of Deere’s outstanding shares. This was at a time when weak crop prices were weighing on the industry. In many ways, this was a classic Buffett…
Image source: Getty Images When looking for stocks to buy, many UK investors naturally have a home bias. Not only does this make sense, but the returns can be explosive. Just look at the one-year performance of FTSE 100 gold miner Fresnillo (+175%) or engine maker Rolls-Royce (+98%). That said, it’s a big wide world out there, with plenty of high-quality overseas companies to choose from. Here are two that I think ISA investors might want to run the rule over today. US tech giant Let’s start with a stock that will be familiar to all readers. That’s Amazon (NASDAQ:AMZN),…
Image source: Getty Images The Diageo (LSE: DGE) share price has taken a hammering over the past few years, hit by changing drinking habits and slowing global demand. But I think this FTSE 100 giant, which has some of the world’s strongest premium brands and a reinvigorated strategy, could be quietly setting up for a powerful recovery. Strategy reset In an attempt to arrest its falling share price, Diageo has instigated a new strategy, codenamed ‘Accelerate’. Several strands make up this programme. A key one is operating model redesign. The company has a strong entrepreneurial mindset and different regions are…
Image source: Getty Images By lunchtime today (22 October), ITV (LSE:ITV) shares were nearly 8% cheaper than at the start of trading. Investors were reacting to the news that the investment arm of Liberty Global had sold approximately 5% of the company, roughly half of its stake in the “global creator, owner and distributor of high-quality TV content”. The amounts disclosed were all approximations but it appears as though the sales price was around 70.5p, which is slightly above the current share price of 68.9p. Nothing to see here Personally, I think it’s important not to read too much into…
Image source: Getty Images For investors looking to build a sizeable passive income, a 7% dividend yield is nothing to sneeze at. Global paper and packaging company Mondi (LSE:MNDI) boasts exactly that. The FTSE 100 company doesn’t necessarily spring to mind as a top dividend stock. However, this £3.6bn market cap company has quietly been climbing toward the top of the Footsie dividend payout tables. What’s happening to the Mondi share price? The company’s shares have drifted this year and are sitting at £8.20 as I write on 21 October. This isn’t far from a 12-year low. It’s been an…