Wealth Management

12 Days of Christmas: Six Geese A-Laying

On the sixth day of Christmas my true love sent to me, six geese a-laying. We mark halfway and Day 6 of the 12 Days of Christmas, with six geese being the religious symbol of creation and reflect on the birth of financial markets we know today.

12 Days of Christmas: Six Geese A-Laying

Six geese laying eggs is thought to have religious significance as according to the Old Testament god created the world in six days. It took considerably more time than that to create the Financial markets as we know them today.

The London Stock Exchange has its origins in 1698 as Jonathan's coffee house in Change Alley in the city of London publishing a list of currency and commodity prices. It was not until 1984 that the FTSE 100 index was launched representing the largest 100 UK companies by capitalisation. In 1986 following Big Bang, computerised trading replaced the old style pit style trading floor. The London Stock Exchange moved to its current home in Paternoster Square in 2004.

The New York Stock Exchange (NYSE) has its origins in the Buttonwood Agreement of 1792 setting a floor commission rate charged to clients for securities trades. The Dow Jones index was first calculated in May 1896 with the S&P 500 coming into existence in 1957. All of these stock exchanges were a-laying roots for the future.

Rosecut believes in using passive (index tracking) investments in our Discretionary portfolios, which follow an investment principle of 'Agile Capital' and consist of a Strategic Asset Allocation (SAA) of three differentiated building blocks:

• Core Equity portfolio

• Core Fixed Income portfolio

• Agile Assets:

The Agile Assets act as a buffer with the ability to tactically switch from cash to being fully invested in the market. The portfolio hopes to generate returns through navigating the business cycle and the tactical agile assets. If you would like to speak to an investment advisor, please drop us an email at [email protected].

The value of an investment and the income from it can go down as well as up and investors may not get back the amount invested. This may be partly the result of exchange rate fluctuations in investments which have an exposure to foreign currencies.

If you would like to read the previous article for the fifth day of the '12 Days of Christmas: Five Gold Rings' please click here.