Top Reads of The Week 17/12/2023

The recent article on a JP Morgan client with dementia losing the vast majority of his wealth and having to sell his condo to move in with his relatives provides several instructive lessons for investors.

First is the importance of diversification.

Concentration pays off if you're right but can be devastating if you're wrong, as happened here.

Spreading investments across asset classes and geographies is key.

Second, advice and incentives aren't always aligned.

It's crucial investors have financial literacy to spot potential conflicts and understand products themselves. Being wealthy doesn't negate the need for financial knowledge.

The third lesson is regular portfolio reviews to ensure investments match objectives and risk tolerances, especially for older investors.

Relationships shouldn't outweigh proper oversight.

The core lessons hold - diversify, educate yourself on risk, and review portfolios often.

Ignoring these tenets can have disastrous effects.

Apply these lessons yourself to avoid similar investing missteps.

Top Reads of The Week

JPMorgan Client With Dementia Loses $50 Million in 5 Years

A JPMorgan Chase & Co. client with dementia lost $50 million over 5 years after the bank failed to properly supervise transactions being made without required consent.

JPMorgan maintained the relationship even with suspicions of cognitive decline and kept fees flowing.

Wall Street’s China Stock Bulls Seek Redemption After a Humbling Year

For the China bulls on Wall Street, 2023 is a year to forget after unanimously turning optimistic last year, only to be confounded by a 14% drop in the MSCI China Index.

Now, hopes are building again that 2024 will be better as policymakers address housing and funding, but expectations are much more modest.

China’s Apple iPhone Ban Accelerates Across State Firms, Government

Chinese government offices and state-owned companies are banning the use of Apple iPhones in response to rising US-China tensions, presenting challenges for Apple in one of its major markets.

Some expect this indicates high-level coordination rather than company policies.

LVMH and Luxury’s Year of Changing Fortunes Set for Reverse Act in 2024

After resilient demand in 2022, the luxury industry expects headwinds in 2023 based on China's zero-COVID policies, inflation, rising rates, and recession fears.

However, most analysts see improved prospects in 2024 on hopes of China reopening and the sector's pricing power.

Hong Kong’s Failed Land Tenders Spike to Record High

The number of failed residential land auctions in Hong Kong has reached historic highs in 2022 amid a weak housing market, sluggish economy, strict pandemic measures and rising interest rates.

The result is lower government revenues from land sales.

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