New research reveals that many investors are concerned about the rising cost of living, particularly with regard to inflation. According to a leading investment platform, one in four of these concerned investors are considering changing their savings or retirement plans.

So what else did the data reveal? And is it a wise move to rethink your investment plans? Let’s explore.

What did the data reveal about investor attitudes to the cost of living crisis?

According to Hargreaves Lansdown, one in every four of its clients are worried about rising inflation enough to consider changing their savings or retirement plans. The investment platform’s data also revealed that one in every seven have decided to build up more savings to help keep up with inflation.

This finding suggests many investors don’t have to sell investments to cope with rising inflation. As Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, explains: “Inflation is more likely to make investors put more money away for the future than it is to get them to sell up, or cut contributions: one in seven say they’ll boost savings. This is a very sensible option.

“When you’re working age, you need three to six months’ worth of essential spending in an emergency savings account, and in retirement, you should have one to three years’ worth. When the cost of your essential spending rises, your emergency fund will need to rise with it.”

Coles also highlights how many investors are on higher incomes, which is why many are able to put away more money during the cost of living crisis. She explains: “The fact that inflation encourages investors to put more away, rather than plunder their investments, owes much to the fact that many investors are on higher incomes.” 

What else did the data reveal?

The most common way investors are dealing with the cost of living crisis is to simply save more. However, it’s important to note that some investors are taking a different approach. 

According to Hargreaves Lansdown, 6% of its clients say they will deal with inflation by selling their shares. Meanwhile, 4% said they plan to sell funds and a further 4% said they’ll withdraw cash from an ISA. Perhaps surprisingly, 3% of investors plan to reduce their pension contributions.

Should you rethink your investment plans amid the cost of living crisis?

While selling shares or reducing pension contributions isn’t the approach favoured by the majority of investors, if you are planning to take similar measures to cope with the cost of living crisis, you may wish to take another look at your portfolio.

That’s because selling shares due to the economic climate may indicate your portfolio does not align with your risk tolerance. The Motley Fool’s risk tolerance quiz can help you determine your investing style.

More generally, whether selling shares or cutting back on your pension is the right thing for you will depend on a number of variables. For example, your personal circumstances and your tolerance for risk are two very big factors.

If you do decide to cut back your investments, consider when you can increase your contributions in future. Sarah Coles explains why this is important: “If you do cut back on saving for the future when money is tight, it’s worth considering when you’ll be able to bump contributions back up.

“A few months away from a pension isn’t going to make a dramatic difference to your retirement, but if it drags on and you don’t have a plan for beefing payments up again when your finances ease, then you could end up with a horrible surprise in retirement.”

Are you looking to invest? If so, then take a look at our list of top-rated share dealing accounts.

About the author

Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

After some brief respite, there’s still plenty of uncertainty in the markets right now – especially around growth and tech stocks. In order to let you in on what the heck is going on, I’m going to reveal some industry insights.

These will include how retail traders are hoping things will bounce back and what the experts have to say about it all. Keep reading for the latest investment scoop and find out how investors are interpreting the latest market movements.

What’s going on with stocks right now?

Tech stocks in particular have been having a pretty awful time lately. Netflix (NFLX) was one of the first FAANG investments to take a whopping downturn, and plenty of other tech share prices followed suit.

This came after news of slowing growth for the world’s favourite binge-streaming service. And it seems like slow growth for high-growth tech stocks is a big no-no. Meta (previously known as Facebook) hit headlines as they reported a first EVER drop in the number of active users on its platform.

It was news that led to a catastrophic meltdown for the Meta (FB) share price. The stock saw its biggest daily market loss since Mark Zuckerberg created the company in his Harvard college dorm and subsequently released shares to the public.

How are retail investors reacting?

You might think that all this negative press and price action is deterring retail investors from stocks such as these. However, it seems quite the opposite is happening.

According to Capital.com, since the beginning of the month, 77% of all trades on the platform have involved the Nasdaq 100.

Although there has been some selling-off, loads of investors are choosing to ‘buy the dip’. This has led to a big uptick in the number of recent Meta investors, with plenty picking up shares at a discount to previous highs.

What do the experts say about the potential for these stocks to bounce?

David Jones, chief market strategist at Capital.com had this to say about the current state of the stock market: “The NASDAQ 100 remains at the top of the list for plenty of traders this week as the volatility in stock markets continues.

“After plunging by 16% in a few weeks at its worst point in January, we had seen an impressive bounce back into February. But for now, at least, the jury is still out on whether this is just a “dead cat bounce” before stock markets turn lower once again.”

How can investors buy stocks in the current climate?

David Jones goes on to explain that: “Traders and investors have been well rewarded for buying the dips over the past 18 months. But at some point that won’t work anymore, at least for a while.”

So, where should you look for hot stocks? Some investors are pouring money into investments related to Natural Gas. This is partly due to the price of the commodity jumping 50% recently.

However, the arctic blasts that are leading to an increase in demand for energy in the US could soon subside. This could potentially lead to further price volatility in the opposite direction. 

Whichever way the wind blows, and whether markets move up or down, there’s only so much you can control. One way to make the most of the current situation is to use a top-rated dealing share account to buy shares in the firms you think will bounce back.

Just remember that investing carries no guarantees. So, research wisely and don’t invest more than you can afford to lose. It’s best to think like a long-term investor rather than a short-term trader.

About the author

Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

We cannot ignore the fact that we are in a bit of a pickle right now. It’s only February, and the cost of living crisis is taking a toll on many Britons. 

Petrol prices are spiralling out of control and inflation is at its highest level in three decades. Only days ago, Ofgem announced that the energy price cap will go up by a whopping 54% in April. It’s a decision that will likely affect more than 22 million UK households.

A new YouGov survey found that only 5% of Brits feel ‘very comfortable’ when it comes to their financial circumstances. Two in five (42%) are not as fortunate and expect their household finances to get worse in 2022. 

So, it is not really a surprise that people are looking for ways to offset these challenges. Here, I take a look at five ways that you could use your home to supplement your income. 

1. Put your home under the spotlight

Did you know that you could rent your home for films or photoshoots? The best thing is that it could turn into a profitable venture. You may also get the added bonus of an acting celebrity visiting your crib, even though on a less personal note. 

You could get your home or even your garden rented out for a shoot by location agencies such as AmazingSpace. This could earn you the whooping £1,500 just for a day-long shoot. You just need to make sure you have somewhere to stay in the meantime. 

2. Rent out a room – or your entire home

The most obvious option on the list is to rent out a room – or the entire property if you are away. If you rent out a room, you could benefit from the Rent a Room Scheme, which allows you to earn up to £7,500 tax-free. For earnings over this threshold, you will need to fill out a tax return and pay tax on it. 

With platforms like AirBnb, you have the freedom to set your own prices. Typically reported earnings in London are around £3,000 a year, but that is in no way the limit. Just remember that if you are a tenant rather than a homeowner, you must make sure your landlord permits you to sub-let part of the property. 

3. Rent out your driveway

For example, if you take your car to work, then you can advertise your driveway as available between 9-5. Or if you have a completely free space, you might make it available for more permanent storage for the likes of a caravan. Again, you are free to set the time and price you want for your space and get payment straight to your bank or through PayPal. Just be mindful that platforms take a cut from your payment. 

4. Rent stuff you don’t use

Do you tend to buy a lot of stuff that quickly begins gathering dust on a shelf? Well, with sites such as Fat Lama, you can earn some easy money by renting out anything from toys to professional equipment. 

You can set the price based on what you decide to rent out. If someone is happy to pay it, the platform will take a 15% cut. Rest assured that if you decide to join the tribe, they will offer lenders protection against loss, damage or stolen property. 

5. Utilise that empty storage space 

This is basically the opposite of renting out your property. Instead of gathering dust and cobwebs, all that empty space in your loft or shed could be put to good use. You can advertise space for free on platforms like StoreMates and earn up to £40 a month. The renter must also cover the 15% service charge for the platform.

However, if you decide to go down this route, make sure your home insurance covers whatever you are storing. This way, there won’t be any unpleasant surprises if something unforeseen happens. 

About the author

Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

New data reveals investors are putting their faith in gold exchange-traded funds (ETFs) as the global economy wrestles with rising inflation.

So, is investing your wealth in the most precious of all metals a wise move in the current climate? Let’s take a look.

What is a gold exchange-traded fund (ETF)?

Gold ETFs track the price of gold. So, if you invest in a gold ETF, you are effectively putting your faith in the commodity.

If you buy a gold ETF, you invest in gold-backed assets rather than holding the precious metal itself. With this in mind, gold ETFs can provide an easy way of getting exposure to gold without having to buy the physical commodity. 

It is for this reason that gold ETFs are often popular with investors looking to diversify their portfolios. The products are also popular with investors who do not have mountains of wealth to buy physical bars of gold. 

You can invest in a gold ETF through a normal share dealing account. Alternatively, it can be bought and held in a stocks and shares ISA.

Is investing in gold ETFs a good idea?

According to new data by the World Gold Council, gold-backed ETFs recorded net-inflows of $2.7 billion (£2 billion) last month. This is the highest level seen since May 2021.

This data suggests that investors are rushing to gold-backed ETFs as inflation takes off around the world.

Aa Adam Perlaky, senior analyst at the World Gold Council, explains: “Gold prices built significant momentum throughout January as turbulence rattled across equity markets. Ultimately, that momentum was brought to a halt after the Federal Reserve signalled potential rate hikes near the end of the month.

“Nevertheless, the inflows into gold ETFs – especially among US funds – points toward gold’s value amid market uncertainty and positive investor sentiment.”

In December, it was revealed that inflation was running at 7% in the United States. Meanwhile, the latest data from the UK suggests inflation is running at a slightly lower, but still significant, 5.4%. The UK figure is expected to go up when the UK’s Office for National Statistics releases January figures on 16 February.

As well as highlighting the mind-blowing $2.7 billion figure, the World Gold Council suggests that the recent ‘gold rush’ is the opposite of what has been happening with the stock market. According to the Council, there has been a sharp selloff in global equity markets recently, driven by the US Federal Reserve’s ‘hawkish’ attitude towards further interest rates rises. 

The Federal Reserve last hiked its rate in January, while the UK’s Bank of England upped its rate last Thursday. Both central banks are expected to make further interest rate rises this year.

Why is gold popular during high inflation?

There is no guarantee that gold will perform well during the current high inflation period we find ourselves in. That being said gold has, in the past, been a popular choice among investors fearful of inflation.

One of the biggest plus points of gold is the fact that the precious metal is hard to mine. According to the World Gold Council, it takes a long time for gold explorers to bring new mines into production. Finding new gold deposits is also extremely challenging.

Taking both of the above factors into account, gold is a very difficult precious metal to acquire. As a result, demand is always likely to exceed supply. This is why gold is seen by some as a good hedge against inflation.

Are investors making a mistake by investing in precious metals?

With the obvious advantages of investing in gold, through an ETF or otherwise, it’s not difficult to see why investors may opt for the precious metal in order to hide from the impacts of rising inflation.

While a gold-backed ETF is unlikely to provide extraordinary returns, there is every possibility that it could deliver a higher return than investing in traditional stocks and shares. This may be particularly true if the stock market crashes, or if inflation reaches a level that is considered rampant. 

There’s no sure way of knowing whether investing in gold ETFs will protect wealth from the current high inflation environment. As a result, there’s no way to determine whether investors buying gold ETFs are making a mistake.

While we know the precious metal has performed better than some other assets during high inflationary periods in the past, this isn’t always the case. Don’t forget, the UK’s inflation rate was high for the majority of 2021. Despite this, the value of a troy ounce of gold actually fell roughly £50 over the year.

For more on gold’s price fluctuation, see our article that explains why the gold price fell in 2021 despite rising inflation.

About the author

Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

If you are as much of a football fan as I am, you’ll agree that last summer’s transfer window had it all. A last-minute call by Sir Alex Furguson proved enough to bring Cristiano Ronaldo back to the red side of Manchester. Meanwhile, the Sky Blues had to contend with Jack Grealish’s record-breaking move from Villa Park.

We also witnessed the end of an era, with Leo Messi’s shock exit from Barcelona. And even though all bets were on a reunion with Pep Guardiola at Man City, the Argentina star decided to go to PSG. And if that was not enough for Les Parisiens, the club also welcomed newly crowned European champion Gigi Donaruma and Liverpool ace Georginio Wijnaldum.

Let’s face it: drama sells

Otherwise, why would Amazon bother filming the ‘All or Nothing’ docu-series?

In the sporting world, athletes are also assets for their respective teams. And while the majority of clubs are privately owned, there are some that are publicly listed. So, have you ever wondered about what happens to a club’s share price after a big transfer? And can you, as an investor, use that to make a profit? Thanks to a report from XTB.com, we can certainly find out how big signings have contributed to stock price rallies for their clubs. 

XTB analysts compiled data on the 10 biggest publicly traded clubs to measure the impact of their transfer activity. The top five most expensive arrivals and departures were analysed to provide us with an insight into the greatest positive and negative impact on stock value.

But what impact do these high-profile moves have on the share prices of the clubs involved? Let’s take a look.

The winners…

Undoubtedly, Cristiano Ronaldo is one of, if not, the greatest to have ever graced the pitch. However, the Portuguese megastar is also a brand in his own right. So it’s no surprise that his last two transfers were in the top 3. His most recent move to Manchester increased the Red Devil’s share price by 5.7%, while his move to the Old Lady resulted in a whopping 30% increase for the Torino-based club. 

Other big-money signings like Jadon Sancho (5.3%) and Paul Pogba (3.6%) have also significantly impacted their new club’s share price.

…and the losers 

While signing a superstar could have a positive impact, losing one could be detrimental. Not the most expensive transfer on the list, but Gelson Martins’ move to Atletico Madrid resulted in a 14% drop in Sporting Lisbon’s share price. In contrast, AS Roma cashed in on Alison, which also resulted in a 7% drop in their share price. 

Can you buy shares in your favourite club? 

The short answer is yes. Like any other publicly listed company, you can trade shares on some share dealing accounts. But before jumping on the bandwagon regarding the next transfer rumour, be sure to hear me out. 

As great as it might sound, buying shares in your favourite club is no novelty at all. You are becoming a shareholder in a real business, and this carries risks.

As seen above, transfers could be the catalyst for some share price volatility. However, Nick Train, a fund manager at Lindsell Train Limited, thinks that “short-term performance on the field is not a major concern”  for investors. Rather, what they focus on is the loyal fanbase that captures the attention of advertisers. 

So whatever your decision is in the end, the bottom line is it must fit with your goals and risk tolerance. If you need any tips or you’re not sure where to start, why not visit the Motley Fool’s investing guide for beginners? 

About the author

Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.