[ad_1] Artificial intelligence is reshaping how investment professionals generate ideas and analyze investment opportunities. Not only is AI now able to pass all three CFA exam levels, but it can complete long, complex investment analysis tasks autonomously. Yet a close reading of the latest academic research reveals a more nuanced picture for professional investors. While recent advancements are striking, a closer reading of current research, reinforced by Yann LeCun’s recent testimony to the UK Parliament, points to a more structural shift. Across academic papers, company studies, and regulatory reports, three structural themes recur. Together, they suggest that AI will not…
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[ad_1] Image source: Getty Images A Self-Invested Personal Pension, or SIPP, is a brilliant and sometimes underrated way to invest in shares. Yet it’s not the only great tax wrapper we have. Brits can also put up to £20,000 a year in a Stocks and Shares ISA. So which one to choose? It’s complex, and I wondered whether AI could shed any light. I narrowed my question down, by asking ChatGPT whether a SIPP or ISA works best for high-yielding UK shares potentially offering more income than growth. Two top tax wrappers I’d never use ChatGPT to pick stocks. It…
[ad_1] Not everyone is fortunate enough to start investing with a chunky lump sum in a Stocks and Shares ISA. For some, perhaps most, they will have to start from scratch with quite modest amounts invested weekly or monthly. The good news is this tortoise-like approach can still win the race to produce attractive tax-free dividends. To give an example, let’s assume an investor wants to aim for a £15,000 second income. How long might it take to get there? Let’s find out. Please note that tax treatment depends on the individual circumstances of each client and may be subject…
[ad_1] Image source: Getty Images The ability to invest up to £20,000 per year in an ISA and not pay a penny tax on the passive income it can generate can be life-changing. In the 2023/24 financial year, the latest for which we have the numbers, UK adults held 15m ISA accounts. And the total cash invested in those ISA accounts came to £103bn! So we’re a nation of canny savers and investors, right? Well, we need to dig a bit deeper. Please note that tax treatment depends on the individual circumstances of each client and may be subject to…
[ad_1] Image source: Getty Images Since the global financial crisis of 2007/09, US tech and growth stocks have produced returns that other stock markets can only envy. In particular, ‘boring, old-economy’ value shares have seriously underperformed faster-growing rivals. However, that established trend has abruptly reversed over the past year, with the FTSE 100 surging in front of the S&P 500 index. By how much has the Footsie beaten its American counterpart? Let’s find out… Fabulous FTSE Over the past 12 months, the FTSE 100 Total Return Index — which includes cash dividends — has surged by 24.3%. That’s one of…
[ad_1] Image source: Getty Images Aviva‘s (LSE:AV.) share price has enjoyed blistering gains over the last year. Investors have received a juicy total return of 32.3%, including a rising dividend. But what does that mean in terms of cold, hard cash? Since 5 February, 2025, Aviva shares have risen 26.6% in value, while its trailing dividend yield for the period is 5.7%. It means a £10,000 investment back then would have turned into £13,320 today. By comparison, the broader FTSE 100 would have delivered a lower (if still solid) return of £12,370. The question is, can the party over at…
[ad_1] Image source: Getty Images Building a second income is a dream for many investors, and a Stocks and Shares ISA is an effective way of doing it. But what sort of pot might be needed to deliver £2,000 a month without running it down too fast? ISAs don’t give upfront tax relief like pensions, yet they offer something just as valuable. All the passive income from dividends and capital gains from rising share prices are sheltered from HMRC, and withdrawals are free of income tax. So how big does the portfolio need to be to earn that £2k monthly…
[ad_1] Image source: Getty Images For investors trying to build passive income from the stock market, Legal & General (LSE: LGEN) offers one of the richest dividend yields in the FTSE 100 Index. The stock is currently paying 8%, on top of some sizeable share buybacks in recent years. I wanted to investigate if this Footsie financial powerhouse is worth considering for passive income investors in 2026. What is happening with the Legal & General share price? The shares are trading at 275p as I write on 5 February, which gives the group a market cap of £15.6bn. The last…
[ad_1] Image source: Getty Images Times like these are when dividend shares really shine. While share prices in the tech sector are flying around all over the place, income investors are just quietly watching the cash roll in. Who cares about whether OpenAI’s spending commitments are going to crash the stock market? Isn’t it easier to just sit back and collect a steady income from businesses that keep making money? AI speculation The stock market of the last couple of years has been artificial intelligence-obsessed. Defence spending and weight loss drugs get honourable mentions, but AI has been the big…
[ad_1] Image source: Getty Images Software stocks in the FTSE 100 such as RELX, London Stock Exchange Group (LSEG), Sage (LSE: SGE), and Rightmove have been absolutely hammered. In the blink of an eye, they’ve fallen by double-digit percentages. So what’s going on here? And more importantly, what’s the best move now? Why have software stocks tanked? The main reason these stocks have been crushed is that the market is concerned that artificial intelligence (AI) companies such as OpenAI (ChatGPT) and Anthropic (Claude) are going to disrupt their businesses in the years ahead. This ‘AI is going to kill software’…