Latest news with #FinkMoney
Yahoo
23-05-2025
- Business
- Yahoo
Energy bills to fall by £129 for UK households as Ofgem confirms new price cap
Ofgem has confirmed that the price for energy for a typical household that uses electricity and gas and pays by direct debit will go down by 7% to £1,720 per year. This will come into effect from from 1st July to 30th September 2025, meaning for a typical household, this will reduce their energy bills by £11 a month. It says the reason for this is that global wholesale prices for energy have gone down, adding: 'While this is the main cause, changes to supplier business costs have also made an impact on energy prices falling.' Read more: Martin Lewis urges parents on Universal Credit to 'check out' £1,800 perk The price cap, which dictates the maximum price firms can charge per unit of energy, currently sits at £1,849 for an average household. Initially, insiders were expecting a dip of 9%, and while this isn't as big a drop as some might have hoped, it will be welcome news for UK households. David Belle, Founder and Trader at Fink Money responded to the price cap change, saying: "A large part of the increase in CPI was due to the energy price cap. "However a large offsetter was motor fuel costs dropping. I track wholesale energy costs and it hasn't increased. How can motor fuel costs drop while wholesale energy costs have apparent gone up, leading to the price cap increase? "It doesn't make sense, and I think OFGEM have been found out here to be wholly working in the interests of energy firms who are still recovering pandemic debts, which now is why they're dropping the price 7%. "They are an abysmal regulator and it's time they were brought to justice." Craig Lowrey, principal consultant at Cornwall Insight, also stated: "The fall in the price cap is a welcome development and will bring much-needed breathing space for households after a prolonged period of high energy costs." He added: "It's a step in the right direction, but it should be taken in context. "Prices are falling, but not by enough for the numerous households struggling under the weight of a cost-of-living crisis, and bills remain well above the levels seen at the start of the decade. "As such, there remains a risk that energy will remain unaffordable for many." Join our dedicated BirminghamLive WhatsApp community for the latest updates sent straight to your phone as they happen. You can also sign up to our Money Saving Newsletter which is sent out daily via email with all the updates you need to know on the cost of living, including DWP and HMRC changes, benefits, payments, banks, bills and shopping discounts. Get the top stories in your inbox to browse through at a time that suits you.
Daily Mail
13-05-2025
- Business
- Daily Mail
Will gold prices soon hit $4,000 - or has it reached a peak? Experts give their verdict
The price of gold has rocketed in recent months as investors seek a haven for their assets amid geopolitical and market uncertainty. While equities have fallen back, with most indices making minimal gains year-to-date, investors have piled into gold. The commodity has reached record highs in 2025, up nearly 25 per cent to $3,260 year-to-date. The pace of growth has accelerated since President Trump announced tariffs, with gold up 9 per cent in the last month. However, the reversal of some tariffs and the recently announced deal between the US and China could reverse gold's fortunes. Has the price of gold peaked, or will continued uncertainty push it higher? Experts below give their views. Why gold has reached its peak - according to some On Monday, the price of gold fell 3 per cent following the US and China tariff deal. David Belle, founder and trader at Fink Money told agency Newspage that it indicates that 'we are the top for gold'. As concerns over trade and tariffs dissipate, he says that 'scared' investors will pull back. He adds that China has been a big buyer of gold since Trump's election in November, 'effectively hedging the past five months.' As the issues turn a corner, China could start to buy USD-denominated bonds to earn yield from its USD holdings. 'Gold doesn't provide this yield. A trade deal being struck should send gold tumbling pretty hard.' Harry Mills, director at Oku Markets says the recent gold rally was a 'classic safe-haven demand play' and given recent progress he 'expects a natural pullback in the price.' However, uncertainty remains, so he is not yet discounting a further bull run to $4,000. Scott Gallacher, director at Rowley Turton warns investors to be cautious as Trump's deal with China means 'gold may start to lose its lustre.' He adds: 'Buying at a potential peak risks sharp losses if the fear premium unwinds.' How gold could hit new highs The record gold rally leads some experts to think that there is some way to go yet. Anita Wright, chartered financial planner at Bolton James, thinks gold could reach as high as $4,000 if the economic and geopolitical issues persist. If inflation continues to tick higher, gold could become an increasingly attractive asset to act as a hedge. 'Gold, a tier-one asset needing no counterparty backing, is increasingly attractive,' says Wright. 'Central banks - not retail speculators - are leading gold purchases to de-risk reserves… Gold is rallying on structural shifts in global finance. 'Corrections are likely, and volatility is inherent, but the underlying bid from institutional buyers remains solid.' Demand from retail investors also continues and increasingly forms a bigger part of portfolios. Faisal Sheikh, managing director at Monmouth Capital says as gains approach 100 per cent, 'gold now presents a lot more of some portfolios than originally intended.' He says while some investors might bank profits, 'the idea that a handful of trade deals signal a return to normal is naive… 'President Trump has already shown willingness to rip up not just deals signed in his first term, but even those struck in the chaotic past few months.' Expectations central banks will accelerate the rate of cuts is also helping push the gold price higher, with markets predicting more to come. Gabriel McKeown, head of macroeconomics at The Sad Rabbit Newsletter, says: 'This, combined with a world rife with international turmoil and tariff proliferation, could be the spark that pushes gold prices towards the $4,000 threshold.' If the price of gold does break the $4,000 barrier, investors are unlikely to be in for an easy ride, as ongoing uncertainty could lead to short-term drops in the price of gold. McKeown adds: 'Despite the enduring bullish outlook, the rapid climb in gold prices could lead to significant volatility. 'With a series of unprecedented highs, the gold market risks overheating and may face bouts of profit-taking, so investors should brace for short-term fluctuations as gold reaches new heights.'
Daily Mail
11-05-2025
- Business
- Daily Mail
Is it time for investors to ditch the minimum five-year plan? Fink Money's DAVID BELLE has his say
David Belle is the founder of and a trader at Fink Money. When it comes to investing, financial advisers often recommend a minimum time frame of five years. This conventional investment wisdom is based on the idea that longer-term investments tend to deliver higher returns while smoothing out short-term market ups and downs. Historically, this approach has merit: over extended periods, markets generally trend upward, rewarding patience with growth. However, this one-size-fits-all advice isn't always the best fit for investors. By sticking rigidly to a five-year minimum, investors will often miss out on shorter-term opportunities that could offer significant gains or better align with their financial needs. This issue can be framed as an 'opportunity cost' problem, where the potential benefits of alternative investment choices are sacrificed for the sake of a long-term strategy. What is opportunity cost? Opportunity cost is a basic idea in economics that when you choose one option, you give up the potential benefits of the alternatives. In investing, if you commit your money to a five-year plan, the opportunity cost is the profit or flexibility you lose by not pursuing shorter-term investments instead. Long-term strategies can offer stability and growth, but they tie up your funds — potentially keeping you from jumping on market trends or unique opportunities that don't fit the traditional five-year mould. Why do advisers push the five year timeframe? For starters, advisers aren't wrong to suggest a 5-year horizon—there's hard logic behind it. Firstly, as we've seen since Trump announced his tariffs, markets can be a rollercoaster in the short term. Stocks might drop suddenly, and if you need to cash out during a dip, you could lose money. A five-year window gives investments time to recover and grow, lowering the chance of selling at a bad moment. Secondly, there's the magic of compounding where, over time, your returns can earn returns of their own. The longer you stay invested, the more this effect kicks in. Third, there's no doubt that short-term market swings can spook investors into rash moves, like selling low after a crash. A longer time frame, by contrast, encourages you to ride out the storm rather than panic. Fourth, some investments — like certain mutual funds or bonds — charge you for pulling out early. Advisers might suggest five-year time frames to dodge those costs. All these points make sense for a long-term approach, but not every investor's situation fits neatly into this box. The hidden cost of longer investment timeframes By locking your money into a five-year plan, you might miss shorter-term opportunities that could pay off faster or suit your goals better. For example, some industries explode with growth over a short period. Think AI and renewable energy. If you spotted the rise of electric vehicles early, investing in a company like Tesla or a related start-up could have brought big returns in just a couple of years. But if your money was tied up in a diversified five-year portfolio, you may have missed that window. Sector booms don't always need five years to play out and waiting that long could mean missing the peak entirely. Also, markets don't always move slowly. A market correction — when stock prices drop 10 per cent or more — can be a golden chance to buy low. Look at the Covid-19 crash in March 2020: stocks tanked as the pandemic hit but many bounced back within months. Investors with cash on hand scooped up bargains and saw gains by the end of the year. If your funds were stuck in a five-year investment, the opportunity cost was the chance to profit from that rapid recovery. Then there's the fact that most people's lives don't always follow a five-year schedule. Maybe you're saving for a house deposit in two years or your children's university fees in three. Tying up your money for five years could leave you scrambling when those deadlines hit. It blocks you from meeting real-world needs. Meanwhile, some investments — like initial public offerings (IPOs) or venture capital — can skyrocket in value fast. When Airbnb went public in December 2020, its stock nearly doubled on the first day. Investors who got in early made a killing in weeks, not years. But if you're locked into a long-term plan, the opportunity cost is the chance to cash in on a quick win. Old-school investment rules don't work for all Financial advisers can deliver real value for certain investors, but it's important people are aware that their old school, conventional advice can amplify opportunity cost issues — and cause some investors to lose out. Advisers may also be incentivised by longer term time frames. Some will earn a percentage of your assets under management (AUM) or commissions on products like mutual funds. The longer your money stays invested, the more they make. A five-year lock-in keeps their income steady, even if it's not ideal for you. Advisers certainly aren't villains, they're often just following what's worked historically. But their generic approach can blind them to shorter-term possibilities that may suit you better. Mix the long-term with the short-term What I'm categorically not saying is that people should ditch long-term investing entirely. Instead, they should implement a strategy that has some flexibility built in, one that bends to their needs and reacts to the markets. To this end, people should review their investments every few months rather every year. Are there new trends or personal goals to adjust for? Staying proactive keeps you ready for change. While it's important to put some money in long-term assets for stability, consider keeping a chunk in shorter-term options — like treasury bills or cash accounts — for quick moves. Maybe 70 per cent long-term, 30 per cent short-term, depending on your risk profile. Also, be sure to line up your investments with when you'll need the money. Short-term goals get short-term strategies; long-term goals like retirement can handle the five-year stretch. Finally, don't rely on one adviser. Talk to others with different specialties to spot opportunities your main adviser might miss. Short-term is not always a gamble Many will argue that shorter-term investing is too risky, as markets are unpredictable and jumping in and out can backfire. They're not wrong: timing the market is tough and frequent trades can rack up costs or taxes. But not all short-term options are wild gambles. Short-term bonds or CDs (Certificates of Deposit) offer steady returns with low risk. Plus, with research and a robust plan, you can cut down on reckless moves. The real risk might be sticking to a five-year plan that doesn't fit your life. The financial world isn't what it was decades ago. Technology, global events and instant information mean opportunities pop up — and vanish — faster than ever. A five-year horizon made sense when markets were slower, but these days, agility matters. A mix of short- and long-term investments can keep you sane and in the game. Carpe diem To wrap up, while a five-year timeframe has its benefits — less risk, steady growth — it's not perfect. The opportunity cost can be missing a tech boom or a market rebound. Advisers mean well, but their long-term bias or incentives can keep you from exploring all your options. Instead of blindly following the five-year rule, aim for a strategy that flexes with your goals and the market. Check your portfolio often, blend short- and long-term investments, and don't be afraid to shop around for advice. That way, you're not just playing it safe, you're playing it smart, balancing stability with the chance to seize the moment.
