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Reading time • 20 minute(s)
Investing during a crisis: Strategies and Tips
Asset prices in financial markets largely depended on the emotions of market participants. Their fluctuations mean that periods of temporary panics and euphoria are cyclical. They are part and parcel of the “mechanics” of the market, and since human psychology has not changed significantly over the past hundreds of years, financial crises and crashes happen periodically. And they are likely to continue to happen, in the future. Usually, a crisis is preceded by a period during which most investors are wrong, driven by greed. Such situations may lead to a crash and can herald a prolonged crisis, fuelled by investors' fear. Most spectacular examples include the 2020 crash caused by the Covid-19 virus, the dot-com bubble of the 2000s, and the Great Depression of 1929, after which the US stock market took nearly 25 years to recover. In good times, investors overestimate the value of some companies and underestimate the risk. This is a characteristic element of a great economy, during which no one worries about the future. Risk control and uncertainty recede into the background. Usually, however, an unexpected event shows that reality is not so great. It could be a systemic problem in the financial sector like the subprime loans in 2008, a war or a period of economic downturn. During a recession, corporate profits and revenues begin to fall. The effect? In the end, euphoria turns into panic and leads to drastic price drops. During them, the market gets rid of assets it loved until recently. Investors see the future in black. They believe that there is no price too low for the things they own. Over time, they are proven wrong again, and the market begins to recover.
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Reading time • 6 minute(s)
What is Next for the AI Trade?
The Artificial Intelligence trade has been a huge market theme for most of the last 18 months, and big gains for the likes of Nvidia have been a key driver of US stock markets. However, has it reached a tipping point? As we move through the second half of the year, the AI trade can no longer be relied on to keep stock markets moving higher. Added to this, the Q2 earnings season also shows us that investors are becoming more demanding about the financial impact of Artificial intelligence investments.
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Reading time • 4 minute(s)
What’s Next for Global Stock Markets?
The first half of 2024 will be remembered for strong gains in stock markets, particularly in the mega caps stocks in the US and Japanese equities. Smaller cap stocks and European equities trailed these gains, however, there could be a chance for them to play catch up. The start of the year was dominated by the chip makers and US stocks, especially the tech stocks. The Nasdaq was one of the top performing stock indices globally, rallying more than 16% from January through to the end of July. Japanese stock indices were also top performers, the Nikkei is higher by more 13% than while the Topix is higher by 14%, as investor interest in Japan was piqued by the prospect of interest rate normalisation by the Bank of Japan. As we move through Q3 a new theme could be about to take over markets.
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Reading time • 14 minute(s)
Climate change investments: Maximising impact
The world is moving forward, and high economic development continues to generate significant levels of carbon emissions. The Earth's climate is changing, and restoring a sustainable environment will help humanity achieve long-term growth without disrupting the planet's ecosystem and the risks that supply behind its damage. A very important “green economy” trend has been hatched as a response to rapid climate change. However, it cannot happen without trillions of dollars worth of investment from the private sector. Climate change creates powerful opportunities for companies that get given the ability to create successful business models based on the new green trend. Investors who choose to invest in this change can expect long-term returns and a positive impact on planet Earth. Of course, this cannot take place without the risks that always accompany investments. How to invest and, above all, how to understand the trend of investing in climate change? From electric cars to investments in uranium miners to investments in water. Examine how renewable energy, sustainable transport, and carbon reduction technologies can align your investments with environmental sustainability and potential growth. Read this article to know how to benefit and impact from climate change investments.
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Reading time • 3 minute(s)
Utilities, Homebuilders, Healthcare & Tech firms: Stocks To Look Out For ahead of the UK General Election
We recently highlighted several stocks that could be worth watching as the general election approaches. Now, with the election drawing nearer, let's take a look at how some of those stocks have been performing over the past month in the lead-up to the big day.
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Reading time • 6 minute(s)
Poll Shows Public More Confident in Labour's Ability to Tackle Economy and the Stock market
The UK is soon approaching July 4, making the pound rally ahead of election day. Labour is still on track to win 40%, with the conservatives on 20% and Reform on 17%. This election is incredibly significant as it could end 14 years of the Conservatives ruling, meaning this would be Labour's biggest win since Tony Blair's 1997 landslide.
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Reading time • 17 minute(s)
UK General Election 2024: What Investors Need to Know
As anticipated by many on July 4, 2024, the United Kingdom will hold a general election. This election will involve voters across the UK selecting Members of Parliament (MPs) to represent them in the House of Commons​. The election is significant as it will be contested under new constituency boundaries established by the 2023 boundary review. These changes are expected to impact the distribution of seats, with some regions gaining and others losing seats based on population shifts​. This general election comes as part of the regular democratic process, and it will follow the dissolution of Parliament on May 30, 2024, leading to a 25-working-day campaign period​. With the UK less than six weeks away from the General Election, Keir Starmer’s Labour is leading ahead, after 14 years of the Tories ruling. Will this election be different and can it shake things up? This article is updated every few days to bring you the latest news and analysis concerning the latest UK election.
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Reading time • 6 minute(s)
Are Tech Stocks in a Bubble?
A stock market bubble is characterised by a rapid escalation of the price of a stock or group of stocks over a period of time. Prices tend to rise well above the intrinsic value of the stock and eventually the bubble will pop. When that happens, stock prices tend to unwind very quickly, wiping out investors in their wake. There have been plenty of examples of stock market bubbles throughout history, including bubbles in tulips, tech stocks, in real estate and even in crypto currencies.
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Reading time • 12 minute(s)
Energy Trading - How to invest in electricity & power?
Markets did not expect increased geopolitical tensions, deglobalisation trends, problems in supply chains and inflation to change sentiment toward energy companies. The global trend toward zero-carbon and green energy sources has also become an additional driver of positive change for the energy sector. The global energy crisis is not just rising gas or electricity prices driving inflation. It's also changing revenue expectations for companies operating in the market, from electricity or LNG suppliers to uranium producers to electric car companies. In this article below, we will identify ways, listed companies and financial instruments that can respond to improving sentiment toward the energy industry. We will answer the question: how to invest in electricity and power?
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Reading time • 9 minute(s)
Can Reddit Win the Internet and the Stock Market? Reddit’s IPO Journey Explained
In the vast landscape of the internet, few platforms have left as indelible a mark on online culture as Reddit. What began as a humble experiment in 2005, has since blossomed into a global powerhouse of discourse, entertainment, and community engagement. Reddit's journey from a simple link-sharing forum to a dynamic network of diverse communities — each with its own distinct identity and fervent following — mirrors the evolution of internet culture itself. Considering Investing in Reddit's IPO? In this article, we delve into its history, pivotal moments, and enduring impact of Reddit, exploring how it has shaped internet culture and influenced the way we connect, share, and interact online. Reddit's recent IPO has sparked investor interest. To help you decide if it's a good fit for your portfolio, let's explore some key details about the company.
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Reading time • 8 minute(s)
Tesla: Ripe for a Recovery?
Headquartered in Austin, Texas, Tesla, Inc. is an American multinational automotive and clean energy company. If you have not kept up with the automotive sector Tesla made a breakthrough through its innovative electrical engineering combining both supercar performance and zero emissions. Many are unaware that the company was founded in 2003 by Martin Eberhard and Marc Tarpenning. Elon Musk joined shortly after, providing crucial funding and assuming leadership as CEO. The company is named after Nikola Tesla, the renowned inventor and electrical engineer. It designs, manufactures, and sells electric vehicles, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services. Tesla has become one of the world's most valuable companies and is a leader in the electric vehicle market. In 2021 the company was valued at $1.06 trillion making it the fifth most valuable company in the S&P500. So where does Tesla stand today and why is its stock tanking?
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Reading time • 5 minute(s)
Uber Takes a Ride to the Top: A Milestone Journey to the S&P 500
After navigating through months of a stock market roller coaster, Uber's shares have experienced a remarkable upswing, surging by nearly 150% this year, making its return comparable to Bitcoin. This notable achievement positions Uber at the threshold of a significant opportunity. Mark your calendars for December 18, as Uber is poised to make a momentous leap by joining the 'elite' group of companies listed on the largest U.S. index, the S&P 500, where it will replace Sealed Air Corp.
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Reading time • 8 minute(s)
Birkenstock IPO: Where Comfort Meets Finance
Here is a summary of everything there is to know about the Birkenstock IPO: Company: Birkenstock Sector: Consumer discretionary Exchange: New York Stock Exchange Ticker: TBD Valuation: $10 billion Shares to be sold: At least 32 million Price range: $44-$49 per share Proceeds: To be used to pay down debt Underwriters: Goldman Sachs, J.P. Morgan, Morgan Stanley Strap in and get ready to walk the financial runway as Birkenstock, the legendary footwear brand known for its timeless comfort and style, takes its first bold step into the world of public trading. In this article, we'll delve into the latest Birkenstock Initial Public Offering (IPO), exploring where the brand came from, its anchor investors, the risks associated with the IPO and how to buy shares when it goes public.
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Reading time • 5 minute(s)
Navigating Black Friday
As the holiday season approaches, so does one of the most anticipated shopping events of the year – Black Friday. Traditionally recognised as the day after Thanksgiving in the United States, Black Friday has evolved into a global shopping phenomenon, offering consumers great discounts and deals. In this article, we delve into research conducted by XTB on the top 10 performing retail stocks for potential investment opportunities. Additionally, we will provide insights for smart shopping strategies during the Black Friday extravaganza, ensuring that you make the most of this annual opportunity.
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