Key takeaways from the week

  • Global stocks ended the week lower in the main however rebounded from weekly lows. This was led by a strong gain in oil. Bonds of Europe’s most-indebted countries rose, this saw markets whipsaw and it’s also worth noting currency volatility has increased to the highest since 2011;
  • The Yen, usually viewed as a safe haven currency, gained 2.5% this week as the Feds dovish approach to US interest-rate policy weighs on the US Dollar; and
  • Oil jumped 7.07% on the week as US output falls before production freeze talks.


Why you should forget about it

Business Insider provides some very entertaining snippets, and this week's point of interest comes from them – a great example of the simple message that investing is a long term game. It highlights that human bias leads the average investor to buy high and sell low, something we covered in a previous blog on investor psychology.

It's a story about a study in the the US run by Fidelity. They found that the most successful investors on their client platform were the ones who simply forgot they owned the account. 

Remember, long term investing means short term volatility doesn't matter. For most people, checking and worrying about their investment account every day will only lead to those behavioural biases which create poor returns.

 

Market data

Equity Indices Value Weekly Change
FTSE 100 6,204.41 0.95%
S&P 500  2,047.6 -1.21%
Hang Seng 20,370.4 -0.63%
Shanghai Composite Index  2,984.96 -0.82%
Nikkei 225 15,821.52 -2.12%
Dax 30  9,622.26 -1.76%
Bonds  Value Weekly Change
US 10 yr 1.72% -2.91%
UK 10 yr 1.36% -3.68%
Commodities / Energy Price Weekly Change
Gold $1,240.69 1.46%
Brent Crude Oil $41.94 7.80%
Currencies Majors Value Weekly Change 
EUR-USD 1.1399  0.07%
USD-JPY 108.07 -3.35%
GBP-USD 1.4128 -0.70%
Central Bank  Rate
Fed Reserve   0.50% 
ECB  0.00%
Bank of England   0.50% 
Bank of Japan -0.10%
Prices as at Friday 8 April 2016

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