Image source: Getty Images Penny stocks are often a source of heated debate among investors. On one hand, they can deliver astronomical gains if the timing’s right. On the other, they’re notoriously risky, plagued by low liquidity, limited track records, and plenty of examples of companies that burn out before ever becoming profitable. For an investor who gets it right, the rewards can be substantial. But it’s rarely easy to spot the winners from the long list of laggards. What makes penny stock investing particularly tricky is the small window of opportunity. Shares can remain forgotten for years and then…
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Image source: Getty Images The Phoenix (LSE: PHNX) share price dropped 10% last week. As somebody who holds the FTSE 100 insurer in a Self-Invested Personal Pension (SIPP), this should worry me, but doesn’t. That’s what share prices do. Sometimes they go up, sometimes they go down. A big part of the latest move was down to the shares going ex-dividend on 25 September. On that day, Phoenix shares fell 4.51%. This happens because when a company pays a dividend, cash leaves the business. The share price usually drops by roughly the size of the payout. In this case, it was a…
Image source: Getty Images What are the traits needed to maximise our chances of building a long-term passive income? I’ve been checking on Stocks and Shares ISA millionaires at the UK’s biggest investing platforms. At AJ Bell (LSE: AJB), millionaire ISA holders have 87% of their investments in shares, on average, including investment trusts. The average across other ISA accounts is just 33%. Barclays conducts annual surveys — and has found the UK stock market easily beating cash savings and bonds for well over a century. And these ISA millionaires are the evidence of the success it can bring. What…
Image source: Getty Images For many investors, the dream of early retirement hinges on building a financial portfolio that can deliver a meaningful passive income. So what it would take to generate £40,000 a year at age 55? Assuming a withdrawal rate of 5%, the maths is straightforward: an investor would need around £800,000 inside their Stocks and Shares ISA. At this level, a diversified portfolio could realistically produce the target income without running the risk of exhausting capital too early. Reaching £800,000 The challenge, of course, lies in getting there. With the ISA allowance currently £20,000 a year, reaching…
Image source: Getty Images The London Stock Exchange is home to around 275 investment trusts, so there’s plenty choose from, despite falling numbers in recent years. Here’s one that I think has strong growth potential in the next few years. Staying private One of the big trends over the last decade has been companies choosing to stay private for longer. This is depriving retail investors of the chance to put their money behind some of the greatest growth businesses of our time. Just look at game-changing enterprises like SpaceX, TikTok-owner ByteDance, and OpenAI, the firm behind ChatGPT. None of these…
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Image source: Getty Images Significant tax advantages make the Stocks and Shares ISA and Self-Invested Personal Pension (SIPP) top products to consider. However, the rules governing these tax wrappers are complex, which can make it difficult for share investors to decide which is the best option for them. ISAs hold a big advantage over the SIPP, in that no tax is payable when money is withdrawn. That said, the SIPP offers a greater chance to build a bigger nest egg in the first place. This is thanks to tax relief of 20%-45%, which provides additional regular money to invest for…
Image source: Getty Images Investors might consider October as a FTSE 100 entry point because history shows it often marks a turning point for stock markets. Despite its reputation for volatility — highlighted by episodes like Black Monday — October frequently acts as a “bear killer,” ending downward trends and kickstarting rallies. Over the last 20 years, average market returns in October have been positive, typically outperforming September and often supporting gains heading into the winter months. With seasonality pushing returns higher after summer weakness, October could be a opportunity for long-term UK investors seeking to benefit from historical patterns…
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Simply Wall StreetEnergy Fuels (TSX:EFR) Advances Rare Earth Magnet Output—Is Its Critical Minerals Strategy Gaining Traction?Earlier this week, Energy Fuels announced that Robert Kirkwood resigned from the board effective October 15 and celebrated operational milestones,….7 hours ago Source link