The Safe Investor - Issue 1 2020

ISSUE ONE: JANUARY 2020
REAL ESTATE
Make 2020 a year
of big profits with
British probate
property
TOOLBOX
Learn the art of
Do-it-Yourself
due dIligence for
better returns!
2020 TRENDS
The emerging
markets tipped
for growth in
2020
THE SAFE INVESTOR
The FREE magazine written by investors, for investors
HAVE YOU BEEN RIPPED
OFF BY YOUR IFA?
Find out how to get the compensation you deserve!

2 3
IN THIS
ISSUE
EMERGING
TRENDS FOR
2020
We take a
retrospective look
at 2019 to see
what new markets
emerged to show
the most growth
potential for the year
ahead.
THE SECRET
PROBATE
PROPERTY
BOOM
How do you grab
a bargain property
at prices up to 50%
below valuation?
The answer is by
buying properties
that are in probate.
Discover how in our
probate property
guide.
8
WHY CBD
OIL WILL
BE HUGE IN
2020
Most people are
unaware of the fact
that the UK is the
biggest exporter
of medical CBD
products on the
planet. We take a
closer look at this
value-laden market.
SAXO
BANK’S
INSANE 2020
FORECAST
Danish investment
bank Saxo recently
published its
“outrageous”
predictions for 2020.
In this day and age
where anything can
happen, perhaps
they could come
true?
24
DUE
DILIGENCE
TOOLBOX
As regulated
financial advisers
come under scrutiny
for mis-selling
investments, we
take a look at the
warning signs of a
bad opportunity.
22
HOW THE
WAY WE
INVEST WILL
CHANGE
The FCA is
continually moving
the regulatory
goalposts to ensure
our financial
security. We take
a look at how this
affects the way we
invest today
28
ON THE
COVER
HAVE YOU
LOST MONEY
BECAUSE
OF POOR
FINANCIAL
ADVICE?
You’re not alone. In
the first six months
of 2019, investors
were relieved of
more than £43m.
Are you a victim of
a scam? Find out
more about making
a claim on the
Financial Services
Compensation
Scheme, (FSCS).
16
4
12

HOT TRENDS
WHERE THE
VALUE LIES...
Will veganism and the green crusade continue? Will
the way we invest and make money change?
While the usual caveats apply (our predictive powers
can go up as well as down, etc) here our some of the
big issues and launches that should have their time in
the spotlight in 2020.
A MICRO
REVOLUTION
2020 investment
innovation will be all
about keeping things
small.
We’ve already
seen the launch of
microinvestment
apps, which allow
customers to invest
tiny amounts of
money – the change
from their coffee
purchase, or the
amount left over in
their bank account
before payday – in
funds that might grow
into a larger nest egg
over time.
Moneybox is the bestknown
of these apps
in the UK, but 2020
could see the growth
of rivals including
Wombat. US-based
commissionfree
trading app
Robinhood received
regulatory approval
in the UK in August
and looks set to
launch soon. While
this one isn’t strictly a
microinvestment app,
experts put it squarely
in the same space, as
it targets those with
small amounts to
invest and an interest
in using technology to
do so.
Micro-journeys – the
simple(ish) decisions
that investors need to
make when they’re
managing their
finances - includes
things as whether
to pay microinvestments
into a
pension or an ISA, and
when to pay off debt
rather than putting
money into the stock
market. Expect the
financial apps that
are currently being
developed to be able
to handle these small
steps, leaving human
beings to focus on the
more complicated
stuff. Like Brexit,
perhaps, or how to
deal with the climate
crisis?
ANOTHER CHANCE
FOR PRE-LOVED
GOODS
Call it secondhand,
vintage or good-asnew,
2020 will be
the year when the
investment world
will realise the huge
potential of the
reuse/reduce/recycle
bandwagon.
As fast fashion
becomes increasingly
unacceptable, there’s
money to be made in
ensuring that secondhand
pieces reach
the consumers who
want them, and the
companies with the
technology to do this
could win big.
This time, the trend
won’t just encompass
the likes of ebay,
where finding an
investment piece
is like searching for
a Gucci needle in a
Primark haystack, but
also new ventures
such as the Clair
index, an exchange for
investment handbags
that positively
encourages us to
see our accessories
as moneyspinners,
and StockX, an online
exchange that was
originally for reselling
trainers but has now
branched out to other
goods like watches
and streetwear.
With the American
secondhand clothes
group ThredUp
forecasting that the
market for resale
fashion is expected
to reach $51 billion
(£39 billion) in five
years, expect the UK
to follow where the
US goes, with more
specialist apps and
sites for secondhand
wear.
PREPARE FOR
IMPACT INVESTMENT
Greta Thunberg isn’t
just inspiring our
children to skip school,
she’s influencing our
investment strategies
as well – and 2020 will
be the year when the
big investment firms
finally take notice.
According to
Schroders, threefifths
of all UK
investors want fund
managers to consider
sustainability, while
the same number
believe they can help
contribute to a more
sustainable world by
choosing the right
investment products.
While cynics might
expect this to lead to a
wave of greenwashing
(with fund managers
scrambling to insert
words such as
“sustainable” and
“environmental”
into their fund
names without really
changing the mix of
investments), we can
but hope that there
will be real change
too, with investors
finding products that
match their green
4 5

credentials becoming
more readily available.
The EU is already
working on better
classifications for
green funds, which
could help customers
to dig deeper into
the holdings that
“sustainable” funds
feel are acceptable.
Expect both new
green launches, and
more environmental
scrutiny of existing
“green” funds in the
coming year.
WAVES OF
WOODFORD
FALLOUT
Arguably the biggest
investment story of
2019, the closure of
Neil Woodford’s Equity
Income fund with the
loss of hundreds of
thousands of pounds
of ordinary investors’
money, will continue
to have a huge impact
on the investment
management industry
in 2020.
Amid the handwringing
and
anger, expect more
interest in lowcost
passive funds,
which simply track a
stock market index,
instead of expensive
active managers
(like Woodford)
whose mission is
to outperform the
market, but who don’t
always manage it.
As well as investors
voting with their feet,
there’s also likely to
be regulatory focus
on fund charges and
the amount of money
that funds can hold in
illiquid assets, such as
shares in companies
that aren’t listed on
the stock market and
so can’t be easily sold
when cash is needed.
The full scale of
Woodford investors’
losses will only be
revealed in the New
Year, with the fund
remaining invested
until January. The
Treasury Committee
of MPs has already
said that politicians
want to examine what
lessons can be learnt
from this saga.
Woodford shockwaves
will reverberate all
the way through
2020 is
forecast to
be a turning
point for
electric
vehicles
2020 as investors
find out just how bad
things are, and fund
managers attempt
to disassociate
themselves from his
style.
Expect lots of talk
about transparency,
liquidity of assets and
the value of active
management from
every fund manager
on the block, as they
continue to deal
with the fallout, and
subsequent outflows
to cheap tracker
funds.
A WELL OF
WELLNESS
INVESTMENT
If we trust Google
Trends to find the
biggest moneymaking
schemes
for 2020 in the $4.2
trillion (£3.3 trillion)
wellness industry, we
should all be getting
our investment highs
from cannabidiol
products.
These are derived
from the non psychoactive
strain of
cannabis or hemp,
so they can’t actually
get you high. They
are perfectly legal –
and apparently great
for making you look
glowing with health,
rather than off your
head.
Look out for launches
from existing
health and beauty
manufacturers, plus
new businesses
capitalising on the
excitement.
Elsewhere in wellness,
Google searches
indicate that soundbaths
(basically a
restful experience
using instruments
like tuning forks and
gongs – probably
quite hard to invest in)
and breathing apps
(an easier proposition)
will also be big in 2020.
Expect a rise in
funds capitalising on
wellness as a global
trend, as well as
products linked to
the demands of an
ageing population
– less soothing
than a sound-bath,
but possibly more
lucrative. Mindfulness
tech may be the next
Fintech boom. Think
about it.
A BOTTOM-FISHING
SPREE FOR UK BAR-
GAINS
As the will they/
won’t they Brexit
saga continued
throughout 2019, UK
businesses fell out
of favour. Figures
from the Investment
If there is one trend that we cannot overlook it is the
growth rate of CBD. CBD sales are growing at doubledigit
rates, especially in the markets where it has been
made legal or has at least been decriminalized.
Association show
that investors pulled
£1.2 billion from UKfocused
investment
funds in July 2019
alone, and a further
£700m in August.
If 2020 brings Brexit
resolution, this may
tempt bold investors
back, looking for
value in the bombed
out index of smaller
stocks, the FTSE 250.
Many are predicting
a return to so-called
“value investing”,
which is the
practice of picking
up companies
whose price is low
compared with their
fundamental value.
This style of investing
is often contrasted
with so-called “growth
investing”, where
buyers pay high
prices for prospective
investment growth.
Value investing has
underperformed for
the past 10 years, but
many believe that
2020 is when its time
will come.
AN ELECTRIC
VEHICLE
REVOLUTION
The pace of
change within the
auto industry is
dizzying, and the
increased interest
in sustainability is
already boosting
demand for electric
cars.
2020 may see licences
for self-driving cars,
breakthroughs in
battery technology
and increased
crackdowns in many
areas of the globe on
emissions-producing
diesel cars.
As well as the cars
themselves, there may
be breakthroughs
in car-sharing apps
and the growth
of safety and
artificial intelligence
technology that will
fundamentally change
our relationships with
our vehicles.
For investors, riding
(or even lift-sharing)
on the automobile
superhighway could
be exhilarating, but a
bit of a rollercoaster
ride as new
partnerships appear,
technology companies
pull out of the race
(as Dyson already
has), and winners and
losers become more
obvious.
Those of you old
enough to remember
how Betamax lost
out to VHS will know
that the eventual
winner isn’t always
the obvious candidate,
so buckle up for an
interesting ride.
6 7

THE SECRET
PROBATE
PROPERTY
BOOM
.
WHEN YOU INVEST IN PROPERTY, YOU HAVE
A PHYSICAL ASSET THAT REPRESENTS AN
OVERWHELMINGLY STABLE INVESTMENT.
In the vast majority of cases, an investment
property will retain its value and appreciate
over time. If you make your monthly mortgage
payments and have the correct insurance, it
is very unlikely that you will experience a total
loss on a real estate investment, making it the
vehicle of choice for many of us.
The security offered by bricks and mortar is
second to none. Property has been shown to
consistently perform better than most other
asset classes. It is a tried and tested market.
However, successful property investment
depends almost entirely on your entry and
exit levels, particularly if you are not of a ‘buy
and hold’ persuasion. Nevertheless, a solid
property purchase can help you weather any
storms of economic uncertainty over the short
or long-term.
Robert Kiyosaki, the author of Rich Dad Poor
Dad, claims that there is money to be made
even when the market crashes:
“Real estate is a long-term hold. It’s not liquid.
I don’t care if the market is up or down. What
I’m looking for is a bargain. I make most of
my money when the markets crash. I made
most of my money in 2007. I made even more
money in the subprime crash. I don’t care
about the overall economy or the markets.”
Because people will always need a place to
live, real estate can be a safe way to invest
your hard-earned money in something that’s
always in demand. It’s no surprise, then, that
buying property is a popular investment today.
Let’s look at some of the other reasons behind
its popularity:
INVESTORS MAKE MONEY IMMEDIATELY
Depending on the type of real estate
Probate properties are incredibly valuable
and can help buyers get a great deal,
whether as a principal home or investment.
Here we take a closer look at a new portal
dedicated to UK homes held in probate
which offers a fast-track to successful
property investment.
investment and the
method with which it
is acquired (i.e., with
or without financing),
real estate investors
may begin earning
cash flow immediately.
For example, when
you purchase a
turnkey real estate
investment, the
property is completely
renovated with a
quality tenant in place.
You receive your first
rent payment at the
end of the first month.
LONG-TERM
APPRECIATION AND
EQUITY BUILD OVER
TIME
Long-term real estate
investments not only
produce positive cash
flow each month, they
also build equity. Every
mortgage payment
you make is done
with the proceeds
from your tenant’s
rent. When you pay
off a mortgage with
the money furnished
by your tenant, you
are essentially having
someone else pay for
your investment.
Appreciation is the
second benefit of a
long-term property
investment strategy.
In most markets,
homes appreciate over
time. According to
the Office of National
Statistics, (ONS) the
average house price in
the UK has increased
by around 5% year-onyear
and many of us
are very aware of the
housing shortage in
the country which is
bound to push prices
up even further.
THERE’S A LOW
BARRIER TO ENTRY
Getting started as
a property investor
isn’t as difficult
as it sounds. You
don’t need to
have hundreds of
thousands of pounds
on hand to make your
first investment. There
are many financing
options available, and
taking advantage of
them is the secret to
success for many real
estate investors. To get
started in real estate
investing, you may
only need to put 10%
down on a property
and finance the rest
with a low-interest
mortgage.
INVESTORS CAN
LEVERAGE THEIR
CAPITAL
If an investor wants to
buy £100,000 worth
of stocks or mutual
funds, they typically
need £100,000 in cash
to do so. Conversely,
with property an
investor can buy
a home valued at
£100,000 for only
£10,000 in cash and
a mortgage for the
remaining £90,000.
While not all
properties meet
the requirements
for a conventional
mortgage (think fixand-flip
investors),
many real estate
investors can secure
multiple mortgages
and grow their
portfolios with
only 10% down
on each property.
Property investors
use conventional
financing to leverage
their cash on hand
so they can purchase
more properties
and maximize
their investment
opportunities.
With an affordable
entry point for
investing, real
estate offers good
potential for growth
and diversification
in a portfolio. And
leveraging assets like
professional property
management
companies allows
investors to buy
properties almost
anywhere, which
means you are
not limited to your
hometown.
INVESTORS ENJOY
TAX DEDUCTIONS
Real estate investors
enjoy tax deductions
that other investors
simply don’t have
access to. Here are
just a few of the
deductions a real
estate investor can
claim:
• Interest paid on
mortgage
• Depreciation
• Property taxes
• Insurance
• Repairs and
maintenance
• Business-related
travel costs
THE TIME
COMMITMENT IS
FLEXIBLE
Fix-and-flip investors
and investors who act
as property managers
make investing a fulltime
job, while turnkey
investors simply use
property investing as
supplemental passive
income. Depending
on your investment
style, different time
commitments are
required.
Arnold
Schwarzenegger
made his first million
in real estate while
building his film
career. The perception
that many people
have of property
investment is wrong
-- it is possible to
successfully invest in
property while holding
down a regular job.
CARRY ON
READING
TO
DISCOVER
EXCLUSIVE
UK
PROBATE
DEALS !
8
9

10 11
The Benefits of Probate Property
The number one benefit of probate property
is the cost. Because there’s such urgency on
making a sale, you’ll typically find these homes
priced at somewhere around 30-to-50% under
their typical market value. Because of this, an
investment in probate property can help make
you money.
In many cases, after purchasing a probate
home, you can go straight ahead and sell it to
someone else, making a decent amount of cash
in the process, otherwise known as “flipping”.
While probate properties may be hard-to-find,
they’re more plentiful than you think.
HOW TO FIND PROBATE PROPERTY
YOURSELF
You’ll pretty much never know whether a house
is probate property when looking through
real estate listings so you’ll have to do a bit
more digging. There are multiple ways to find
probate property, including the following:
• You can look through the obituaries in your
local newspaper.
• You can visit a deceased person’s area and
look through court records to determine if
they owned any property.
• You can look for an office that deals with
testaments and wills. Wills are public
documents and easily accessible.
• You can also buy information from private
companies regarding available probate
property.
The easiest way to source the best deals is to
visit the UK¡s first dedicated probate property
portal Properties Direct, where you can find the
best bargains in the country
ABOUT PROPERTIES DIRECT
Properties Direct offers the most extensive listings of property held in probate in the
UK. Due to the highly sought-after information available on the portal, it is subscriptionbased.
In order to qualify as a member of Properties Direct, you will have to complete an
extensive questionnaire concerning your financial circumstances. There are reasons for
this, which are mainly to provide all members with the following benefits:
UNDER-THE-COUNTER SALES: Featured probate properties are not listed on the
open market, ensuring you the very best and most exclusive deals anywhere in the UK!
MASSIVE DISCOUNTS ON BRITISH HOMES: The longer an estate is in
probate, the more it costs beneficiaries. That means you are ensured a quick and easy
transaction at a bargain price when you buy via the portal.
NO BIDDING WARS, NO GAZUMPING: Every probate property listed on the
portal is priced by estate administrators and offered on a first come, first served basis.
UP TO 90% MORTGAGE FINANCE: If you don’t want to tie-up your capital and
can satisfy the lender’s criteria, you will automatically pre-qualify for up to 95% mortgage
finance when you become a member of Properties Direct.
NO TIMEWASTING: Members will be required to satisfy a credit check on
application. This is to ensure everyone has adequate buying-power to make quick,
straightforward purchases.
BE A FAST-TRACK PROPERTY INVESTOR: Perhaps you don’t have the capital
but earn a significant income? Qualifying to become a member also gives you access to
funding that can help grow your portfolio faster.

CBD oil has seen a vast
increase in popularity
over the last few years,
slowly infiltrating
modern society as a
remarkable natural
supplement. By now,
most people appear
to have at least some
idea about what
CBD oil is; some are
even able to tell you
some of its uses. This
increased awareness
has changed the
entire CBD market;
some predictions state
it could reach $20
billion by 2024.
There is increasing
evidence suggesting
that CBD oil could
become a mainstream
product that is used
throughout the US
and internationally
as early as this year.
Although some
people are skeptical,
the multiple changes
to our society and the
CBD oil industry as a
whole have made this
prediction a strong
possibility.
Here we examine the
growth drivers in the
CBD industry set to
make it boom in 2020.
WHY CBD OIL WILL BE HUGE IN 2020
level by redefining
it as an agricultural
product as opposed to
a drug.
As regulation affecting
CBD cultivation and
use continues to
mature in the US,
other countries are
following suit. At the
current time, countries
that have legalised
the medical use of
then. This is because
CBD oil is extremely
difficult to regulate.
Some companies
have been caught
for not accurately
representing what
their product contains.
This movement has
led to many medical
professionals refusing
to recommend CBD
oil products to their
communities.
In 2020, this
movement will be
even larger and
stronger. This in
turn should mean
that people aren’t as
wary as previously to
try CBD. It may also
reduce the number
of doctors and other
medical professionals
going to the press
This led many people
to believe CBD oil was
the next version of
snake oil; essentially
a product that did
nothing, but was
hyped up to make
people spend money
in the belief that it did.
Recent research,
however, is disproving
these attitudes.
One pivotal study
CBD OIL IS MORE
AFFORDABLE THAN
EVER
One of the big
problems with CBD
oil when it first gained
popularity in the US
was the price. In 2014,
Forbes reported that
the expected average
price for one mg of
the oil was as much
as $1.25. With many
CBD oil specialists
recommending
doses of 50mg or
more, this could
get quite expensive
quite quickly. As
a consequence,
many people
were prevented
from buying
CBD oil because
of their financial
circumstances.
However, with the
growth CBD oil has
experienced yearon-year,
demand
has increased, which
has, in turn lead to
a reduction in the
cost of the oil. This
is great news for
consumers who could
not previously afford
the inflated prices.
The continued drop in
prices should create
more of a buzz in
2020.
Some consumers
are worried that this
deterioration in price
might come with a
decrease in the quality
of the CBD oils on
the market, but this
isn’t necessarily the
case. Many American
dispensaries have
taken this concern
into consideration
and stock CBD oils
at a variety of price
ranges, perfect for
both beginner and
experienced users
and to suit all price
brackets.
Another concern as
CBD oil becomes
more affordable is
that investment in the
industry will follow
suit, but this hasn’t
been the case. The
increase in consumer
sales of CBD oil
has actually been a
positive force, with
some investment
specialists considering
the oil the next gold in
terms of value.
MANY COUNTRIES
ARE LEGALISING CBD
OIL
You cannot talk
about a surge in the
popularity of CBD oil
without looking at
the legal landscape
in the US, which
changed dramatically
throughout 2018
and is continuing to
metamorphose today.
This dramatic
alteration began at
the end of 2018, when
Donald Trump signed
the Farm Bill into law,
thus decriminalizing
CBD oil on a federal
cannabis include
Argentina, Australia,
Canada, Chile,
Colombia, Croatia,
Cyprus, Germany,
Greece, Israel, Italy,
Jamaica, Lithuania,
Luxembourg, North
Macedonia, Norway,
the Netherlands,
New Zealand, Peru,
Portugal, Poland,
Switzerland, and
Thailand.
THE INDUSTRY HAS
BEGUN MAKING
TRANSPARENCY A
PRIORITY
Transparency has
been a big issue in
the CBD oil industry
ever since it gained
popularity and,
really, this was the
case even before
patients. Some are
going to the media
to actively caution
against the product’s
use.
However, beginning in
2018 and continuing
throughout last year,
there has been a huge
demand for CBD oil
companies to be more
honest, which has led
to a change in the
industry.
These changes are
making it easier
than ever for people
to find reviews of
trusted CBD oil
suppliers online. Those
who don’t adhere
to transparency
increasingly find
themselves outed
within these
discouraging its use,
despite its varied
health benefits.
ONGOING STUDIES
ARE PROVIDING US
WITH EVIDENCE TO
BACK UP HEALTH
CLAIMS
Up until recently,
much of the education
we had about CBD oil
relied on anecdotal
evidence and small,
sample studies. Even
when we did have
in-depth studies into
the cannabinoid oil,
they were usually
completed on animals
in a lab environment,
which leaves an
element of doubt
when transferring
these effects to
humans.
that is the talk of the
CBD oil community
at the moment is
a UK study with
human participants
over 54 years of age.
This study involves
gaining an accurate
representation of
just how CBD oil
could be used to
slow the progression
of, and potentially
cure, Alzheimer’s
disease. There are
similar human studies
going on in the US
for patients suffering
from a variety of
different cancers.
Although many of
these studies were
initially inspired by a
terminally ill man’s
plight for more time
12 13

while suffering from
lung cancer, there
have since been
promising results
with leukemia, breast
cancer and even
bowel cancer.
Having more
information like
this available to us
provides people with
the encouragement
they need to try CBD
oil for themselves
instead of relying on
hearsay. It may also
encourage doctors
and other medical
professionals who
have been hesitant
to recommend CBD
oil due to a lack of
research to change
their minds in the
coming months and
years.
THE CBD INDUSTRY
IS CONSTANTLY
EXPANDING
PRODUCT RANGE
With market
prediction numbers
increasing all the time,
, many companies
from other industries
are doing everything
they can to appeal to
the industry. One of
the only industries to
do this successfully to
date is the cosmetics
industry, with Sephora
recently launching
its own range of CBD
oil products. This
is completely legal
according to the FDA
and the Farm Bill, as
long as they are not
indirectly promoting
unproven health
benefits.
Other industries have
also seen moderate
success when trying
to gain a way into
the CBD market. This
includes the food
and drink industry. A
number of breweries
are now selling CBD
oil-infused beers,
and coffee shops
are promoting CBD
oil in protein shakes
and hot drinks. These
innovative beverages
have sparked great
interest nationally,
leading to an increase
in the number of
people trying CBD oil
for the first time.
However, there are
some questions about
legality in the US. In
some states, these
drinks are perfectly
legal, but the FDA
argues that selling
CBD oil in a form that
can be consumed
is not currently
advisable.
For pet lovers, CBD
oil has become a
saving grace for many
health conditions
commonly associated
with dogs. This use
has gained so much
popularity that more
people are beginning
to embrace this trend
by providing CBD oil
edibles for dogs to
consume. However,
some legal bodies
are declaring these
products as illegal,
with veterinarians are
generally advising
against this due to
the severely limited
research on how CBD
oil interacts with dogs.
THE WELLNESS
INDUSTRY IS
EMBRACING CBD
OIL AS A NATURAL
SUPPLEMENT
For years, the
alternative wellness
industry was
considered to be full
of hippies and others
like them, but this is
no longer the case.
The situation has
changed so much
that we are now
seeing wellness being
presented as one of
the top healthcare
trends of 2020, but it
is an industry that has
been growing since
long before this latest
eruption.
The wellness market
experienced a
surprising 12.8%
industry market
growth between 2015
and 2017. This is twice
as fast as overall global
economic growth.
The good news is
that many within the
wellness industry are
beginning to embrace
CBD oil. Many people
are using it alongside
vitamins to remain
healthy and control
existing health
conditions.
This significant
trend is expected to
boost the hype and
popularity of CBD
not only within the
wellness industry but
in the mainstream
media itself. 2020 is
probably going to
be the year when
many outlets cite
CBD oil as the health
supplement you need
to include in your daily
routine going forward.
INFLUENCER
ENDORSEMENTS
FOR CBD OIL ARE
INCREASING
If you’re on social
media, chances are
you follow at least one
influencer or at least
know what they are.
You’re probably aware
that these influencers
tend to shy away from
difficult or potentially
controversial products
for fear of losing
their dedicated
audience and gaining
a negative online
reputation.
This is why CBD oil
products weren’t
popularly advertised
on social media
websites like
Instagram and
Twitter; but this,
too, is changing. In
2019, dedicated lists
of influencers have
appeared showing
willingness to or
with experience of
working with CBD oil
companies.
This is a major
indicator that CBD oil
will be huge in 2020;
these influencers have
a bigger contribution
to consumer habits
than celebrity
endorsements.
As a result, more
people are likely to
look into CBD for
themselves and make
purchasing decisions
based on these
recommendations in
2020.
It seems like the entire planet is obsessed with cannabidiol, aka
CBD. Here are five fast facts about the latest cannabis craze:
14
• It won’t get you high. THC is the psychoactive compound that
creates the “high” associated with marijuana. CBD’s effect is totally
different.
• CBD is in a legal gray area in the US. with conflicting state and
federal laws. While it’s no longer a Schedule 1 controlled substance,
the FDA has NOT legalized CBD for sale as a supplement.
• CBD is safe and non-habit forming. The World Health Organization
has stated that pure CBD is safe for consumption.
• CBD comes in many forms. The most common include oils,
tinctures, cosmetics, topical creams, gummies, chocolate, powder
and beverages.
• CBD purportedly helps with anxiety, inflammation, headaches,
epilepsy, insomnia, arthritis and a number of other health
conditions.
15

HAVE YOU
LOST MONEY
BECAUSE OF
POOR FINANCIAL
ADVICE?
THE FINANCIAL SERVICES
COMPENSATION SCHEME
EXISTS TO GET YOUR
MONEY BACK. FIND OUT
HOW.
IN THE FIRST SIX MONTHS OF
2019, INVESTORS LOST £43M
DUE TO MIS-SOLD FINANCIAL
PRODUCTS. DISCOVER EXACTLY
WHAT IS COVERED BY THE
SCHEME IN OUR QUICK GUIDE.
WHAT IS THE
FINANCIAL SERVICES
COMPENSATION
SCHEME (FSCS)?
The Financial Services
Compensation Scheme
(FSCS) protects
customers from losing
some of their cash if
authorised financial
services firms go bust.
It also protects against
unscrupulous advisers
from mis-selling
financial products.
In some
circumstances, you
could be covered for
more than £85,000.
There’s a measure to
protect temporary
high balances in bank
accounts - where you
have money resulting
from things like house
sales or inheritances
- when you’ll be
covered for some
types of funds up to
£1m for six months.
AM I ELIGIBLE FOR
THE FSCS?
You can only claim the
FSCS compensation in
certain circumstances,
and certain criteria
must be met. The
rules have been set by
the Financial Conduct
Authority (FCA)
and the Prudential
Regulation Authority
(PRA). The criteria are
as follows:
• the financial
services firm must
have failed and be
unable to return
your money itself -
ie it is ‘in default’
• the FCA or
PRA must have
authorised the firm
when you used it
• you must have
actually lost money
• you’re claiming
for personal
money you’ve
lost - although
some businesses
and charities
may be able to
claim in some
circumstances
DOES THE FSCS
COVER MORTGAGES,
INSURANCE AND
INVESTMENTS?
It’s not just your
savings that are
protected by the
FSCS – it also
covers investments,
mortgages and
insurance. The
compensation
limits are different
to savings, and vary
depending on the
type of product you
own. Current limits for
each product area are:
• Investments: 100%
of the first £85,000
if the firm failed
after 1 April 2019,
£50,000 if before
• Mortgage advice
and arranging:
100% of the first
£85,000 if the firm
failed after 1 April
2019, £50,000 if
before
• Long-term
insurance (eg life
assurance): 100% of
the claim
• Compulsory
general insurance
(eg third-party
motor insurance):
100% of the claim
• Non-compulsory
general insurance
(eg home
insurance): 90% of
the claim
• General insurance
advice and
arranging: 90% of
the claim. Advice
for compulsory
insurance is also
protected up to
90% of the claim.
Each product type is
treated independently
under the FSCS rules,
so if you choose to
bank and invest with
the same provider
you would be entitled
to compensation for
each of the products
you hold, up to
the relevant FSCS
limits. While the
limit for investment
compensation will
be increased to
£85,000, some other
intermediation
changes are also
due to take place in
2020. On 1 April last
year, investment
intermediation,
life and pensions
intermediation,
and home finance
intermediation all
increased from
£50,000 to £85,000.
DO YOU THINK
YOU MAY HAVE
A CLAIM FOR
COMPENSATION?
CONTACT CLAIMS
DIRECT AND SET
THE WHEELS IN
MOTION. YOU MIGHT
BE ENTITLED TO
THOUSANDS OF
POUNDS! WHAT
A GREAT WAY TO
START 2020 RIGHT?
CLICK ON LOGO
BELOW
16 17

FCA TIGHTENS
REGULATIONS TO PROTECT
RETAIL INVESTORS
REGULATION IN 2019 WAS
FOCUSED ON THE CONCEPT OF
PREVENTING NAUGHTY PROVIDERS
OR ADVISERS PUSHING A
FINANCIAL PRODUCT TO PEOPLE
FOR WHOM IT ISN’T FIT FOR
PURPOSE.
The Financial Conduct Authority has produced
reams of red tape to prevent pensions,
investments, mortgages and protection policies
being promoted to those who would be better
off without such products.
The regulator has rightly recognised due to
sales targets and inappropriate marketing
some people ended up worse off as a result
of their run-in with the regulated world of
financial services.
However, it has also become clear that the
nation’s regulatory bodies need to recognise
the fact many people are now buying financial
services because of social media influencers.
Action needs to be taken to address the rise of
so-called influencers - and people pretending
to be the likes of consumer champion Martin
Lewis.
The nation’s leaders and regulators need to
realise today’s equivalent of a dodgy salesman
knocking on your front door are paid posts
disguised as unbiased endorsements on social
media.
Action needs to be taken to address the rise of
so-called influencers - and people pretending
to be the likes of consumer champion Martin
MAKE
2020 THE
YEAR YOU
GET YOUR
MONEY
BACK!!
Lewis - pushing how rich they are as a result of
some unregulated financial offering.
Last year, Mr Lewis dropped his legal
action against Facebook over a series of
advertisements that ran on its platform,
falsely claiming he backed several investment
schemes.
The MoneySavingExpert website founder
argued the fake endorsements damaged
his reputation but dropped his case when
Facebook agreed to introduce a scam ads
reporting button.
As part of the deal, Facebook will also donated
£3m to Citizens Advice. The organisation will
use the money for a scheme to identify and
fight online scams and support their victims
and will include work to develop tools to help
the public identify such fraudulent activity.
The FCA does have rules surrounding what
regulated financial services providers and
advisers can and can’t say on social media
channels.
However, more needs to be done by the
regulator to recognise why people are willing to
invest in vehicles unprotected by the Financial
Services Compensation Scheme just because of
chatter on the likes of Twitter and Facebook.
Action is needed from the UK’s regulators to
force social media giants to tackle the shady
side of social media influencers and false
advertisements.
YOU COULD CLAIM COMPENSATION
UNDER THE FSCS IF YOU MEET ALL
THE FOLLOWING CRITERIA:
• The financial services firm you did business with
has failed and is unable to return your money
itself (the company is ‘in default’).
• The FCA or PRA authorised the firm under FSMA
to carry out regulated activities at the time you
did business with it.
• The firm owes you a civil liability (e.g.
negligence) in connection with a regulated
activity that we cover (e.g. advising on
designated investments).
• You have suffered actual financial loss as a
result; and
• You’re a private individual (although some
businesses and charities may be eligible,
depending on the type of claim.
CHECK IF YOU’RE ELIGIBLE TODAY BY
CONTACTING CLAIMS DIRECT
18 19

AVOIDING
THE MINI
BOND TRAP
The UK’s Financial Conduct
Authority (FCA) has banned the
mass marketing of speculative
mini-bonds to UK consumers in
time for the upcoming ISA season.
11,600 investors are set to lose
most of the £236m they put into
‘mini bonds’ after the collapse
of London Capital & Finance
in 2019. As a consequence, the
FCA has banned marketing
these unregulated products,
effective from 1st January
2020.
The London city watchdog announced
last November that it was introducing the
restriction from 1 January 2020 without
consultation. It will prevent these products
being promoted to retail investors as suitable
for Individual Savings Accounts (ISAs). The ban
will last for 12 months while the FCA consults
on making permanent rules.
The term ‘mini-bond’ refers to a range of
investments. The new restrictions will apply
to complex bonds where the funds raised are
used to lend to a third party, invest in other
companies or purchase or develop properties.
Under its product intervention powers, the
FCA does not need to consult the firms
affected.
The FCA has limited powers over issuers of
speculative ‘mini-bonds’ because the firms
involved are usually unauthorised by the
watchdog. However, it can take action when
an authorised firm promotes or sells such
products.
The FCA said it was concerned that an
increasing number of promotions were frauds
or scams. It has been working with Google
to take down websites and has been using
web scraping to try to identify mini-bond
promotions.
Andrew Bailey, Chief Executive of the FCA
said: “We remain concerned at the scope for
promotion of mini-bonds to retail investors
who do not have the experience to assess
and manage the risks involved. This risk is
heightened by the arrival of the ISA season at
the end of the tax year, since it is quite common
for mini-bonds to have ISA status, or to claim
such even though they do not have the status.”
The FCA ban will mean that unlisted speculative
mini-bonds can only be promoted to investors
that firms know are sophisticated or high-networth.
Marketing material produced or approved
by an authorised firm will also have to include
a specific risk warning and disclose any costs
or payments to third parties that are deducted
from the money raised from investors.
The FCA should be deeply concerned
that advisers have clients arriving at
their offices having already invested six
figure sums as they talk about the latest
big financial thing on social media as
the equivalent of a fantastic, trustworthy
tip worth betting the price of a London
property on.
If action isn’t taken in this area, the
next big mis-selling scandal won’t be
down to financial advisers or traditional
product providers; it will be caused by
social media.
IF YOU THINK YOU MAY HAVE A CLAIM FOR
COMPENSATION? CONTACT CLAIMS DIRECT
TODAY. TOGETHER WE CAN FIGHT TO GET YOUR
CAPITAL BACK!
CLICK ON LOGO BELOW
20 21

DUE DILIGENCE
TOOLKIT
THE MOST IMPORTANT QUESTION
There are five “must ask” due diligence
questions to help you boost your returns
which we’ll be covering one by one over
the next five months. These are the
golden rules of due diligence that ensure
professional investors are best-placed to
earn decent returns. Although nothing is
set in stone and all investments can go
down as well as up, etc., there is quite a lot
you can do to investigate an opportunity
before committing your money to it.
Here, we take a look at the first and possibly
most important question to ask when
reviewing an investment opportunity,
which is………
How Can I Lose Money With This
Investment?
You don’t know an investment until you
understand all the ways you can lose
money with it. This is so important that
Warren Buffet’s top tip for investors is: “Rule
No. 1: Never lose money. Rule No. 2: Never
forget rule No. 1.”
We can’t overemphasize the importance of
this question. You must first focus on the
return OF your capital, and only second
concern yourself with the return ON your
capital.
The first question when analyzing any
investment is to find all the ways you can
potentially lose money by identifying in
advance all the major risks involved with
the opportunity.
Once these risks are fully identified, the second step is to pro-actively mitigate whatever
risks are manageable. We explain this two-step due diligence process in greater detail
below:
The First Step in Risk Management is to
Identify the Risk Profile
Your first job is to identify all the ways
you can lose money with a particular
investment. You do this by identifying and
grouping the risks associated with that
investment. You don’t know an investment
until you understand all the ways you can
lose money with it.
With proper portfolio design and
investment strategy, you can usually
manage away every significant risk (except
one or two) to acceptable proportions.
These one or two remaining risks define the
specific, uncontrolled risk profile for that
investment. It’s the leftover risk you must
live with.
In order to manage away the risks of loss,
you must first know what risks are inherent
to the investment you’re considering.
Using the stock market as an example,
there are almost a limitless number of risks,
but for practical purposes, they can be
profiled down to a few major categories:
“Company specific” risks include things
like accounting scandals, lawsuits, and
mismanagement – anything unique
to the company that’s not part of the
industry. These risks are managed away by
diversifying among multiple companies.
Mutual funds and exchange traded funds
(ETF) are great examples of simple, cost
effective tools to diversify away company
specific risk.
“Industry specific” risks include a downturn
in demand for widgets, changes in
consumer tastes, disruptive technology
changes, and industry law changes. This
risk is controlled by not concentrating your
portfolio in a single industry.
A closely related risk is “investment style”
risk such as value vs. growth, or large cap
vs. micro cap. The market will vary how it
rewards or punishes different investment
styles over time. For this reason, you should
manage this risk by not concentrating too
heavily in any one specific investment style
like micro-cap, value, or growth.
“Market” risk is associated with a general
downturn in investor’s appetite for
stocks, causing an overall reduction in
the valuation level of equities. This risk
is manageable through a sell discipline,
hedging, or by diversifying into noncorrelated
markets such as real estate,
commodities, cash, or international equities
rather than solely domestic equities.
Again, the above risk profiles are designed
to illustrate stock investing. However,
the same principles can (and should be)
applied to every asset class in your portfolio.
ALL OF LIFE IS THE
EXERCISE OF RISK
-WILLIAM SLOANE COFFIN, JR.
22 23

SAXO
BANK’S
INSANE
2020
FORECAST
2016 was the year when anything
became possible, particularly in
the UK with the Brexit referendum
and the US which saw Donald
Trump elected as leader of the free
world. These kinds of political and
economic shocks inspired Danish
investment bank Saxo to publish its
10 “outrageous” predictions for 2020
last month.
The report doesn’t reflect the firm’s
official market forecasts for next year,
but rather focuses on “unlikely but
underappreciated events” driven by
disruption. The predictions range
from macroeconomic forecasts to
major shifts in specific industries.
Although the predictions may seem
very far from ever being reality,
we already know that disruption is
lurking around every corner.
“We see 2020 as a year where at
nearly every turn, disruption of the
status quo is an overriding theme,”
Saxo Bank chief economist Steen
Jakobsen said in a statement.
“The year could represent one big
pendulum swing to opposites in
politics, monetary and fiscal policy
and, not least, the environment.”
While the predictions don’t reflect
Saxo Bank’s official market forecasts
for 2020, they represent a “warning of
a potential misallocation of risk,” for
investors that see a small chance of
the events materializing.
According to Saxo
Bank, the microchips
powering the artificial
intelligence revolution
could start to yield
diminishing returns in
2020.
“As reality sets in on
the limitations of AI the
SOX Index collapses
50% with deteriorating
earnings growth as
investments freeze in a
new AI winter,” the firm
wrote.
Chipmakers’ growth in
recent years has come
from investments in
everything from AI to
cryptocurrency. But
those gains could
sputter in 2020 as
actual results fail
to meet investor’s
expectations, the bank
added.
“The iShares MSCCI
World Value Factor ETF
leaves the FANGS in the
dust, outperforming
them by 25%,” Saxo
Bank predicts.
The bank continued:
“Each credit cycle has
required ever lower
rates and greater
doses of stimulus to
prevent a total seizure
in the US and global
financial system. With
a growing deficit and
Saxo Bank predicts
that Christine Lagarde,
the new European
Central Bank president,
could decide to
reverse the direction
of monetary policy in
Europe.
“She points out that
maintaining negative
deposit interest rates
for a longer period
could seriously harm
the soundness of the
European banking
sector,” Saxo Bank
wrote, referring to a
hypothetical scenario.
The firm added: “In
order to force euro area
governments, and
notably Germany, to
step in and to use fiscal
policy to stimulate the
economy, the ECB
reverses its monetary
policy and hikes rates
on January 23, 2020.”
not only will the oil
and gas industry be
a surprising winner
in 2020 - the clean
energy industry will
simultaneously suffer
a wake-up call.”
Saxo Bank predicts
the exchange rate
between the South
African rand and the
US dollar could rise
from 15 rands per dollar
to 20. The South
African government
warned last year that
the country’s financial
position could worsen
as it continues to bail
out the ESKOM, a struggling
utility.
“The ESKOM fiasco
may be the straw that
will break the back of
creditors’ willingness
to continue funding
a country that hasn’t
had its financial or governance
house in order
for decades,” the
bank said.
24 25
01
CHIPMAKER STOCKS
COLLAPSE IN ‘AI
WINTER’
02
STAGFLATION
REWARDING VALUE
OVER GROWTH
STOCKS
low interest rates in
the US, the Federal
Reserve could be
forced to “super-size”
its balance in the next
recession”.
03
EUROPEAN CENTRAL
BANK STARTS
HIKING RATES
04
OIL AND GAS
OUTPERFORMS
CLEAN ENERGY
“The combined forces
of lower prices and
investors avoiding
the black energy
sector have pushed
the equity valuation
on traditional energy
companies to a 23%
discount to clean
energy companies,”
the firm said.
Saxo Bank added:
“In 2020, we see
the tables turning
for the investment
outlook as OPEC
extends production
cuts, unprofitable
US shale outfits slow
output growth and
demand rises from
Asia once again. And
05
SOUTH AFRICA’S
CURRENCY WEAKENS
AS THE WORLD CUTS
OFF CREDIT LINES

06
07
08
PRESIDENT TRUMP
INTRODUCES NEW
TAX TO REDUCE
TRADE DEFICIT
SWEDEN ROLLS OUT
FISCAL STIMULUS’ TO
BETTER INTEGRATE
IMMIGRANTS
DEMOCRATS WIN THE
2020 US ELECTION
DRIVEN BY WOMEN
AND MILLENNIALS
The fallout from the
US-China trade war
could push President
Trump to implement
an “America First
Tax” to balance the
growing trade deficit,
Saxo Bank predicts.
“Under the terms of
this tax, the US corporate
tax schedule
is completely reconstructed
to favour USbased
production
under the claimed
principles of “fair and
free trade”.
Sweden is currently
grappling with a
growing group of
Swedes that are
unhappy with the
country’s approach to
immigration.
“A massive and
pragmatic attitude
shift washes over
Sweden as it gets
to work to better
integrate its
immigrants and
overstretched social
services, driving a
huge fiscal stimulus
and steep rally in SEK.
Democrats could win
the presidency, while
assuming control
of both houses of
congress in 2020
thanks to high turnout
from women and
millennials, Saxo Bank
said.
“Millennials and
even the oldest of
“generation Z” in the
US have become
intensely motivated
by the injustices and
inequality driven by
central bank asset
market pumping
and fears of climate
change, where
President Trump is
the ultimate lightning
rod for rebellion as
a climate change
denier,” Saxo Bank
wrote.
The swift victory could
send big healthcare
and pharma stocks
tanking as much as
50% on regulatory
concerns, the firm
added.
26 27
09
HUNGARY LEAVES
THE EUROPEAN
UNION
Hungary joined the
European Union in
2004, but the country’s
relationship with the
bloc has splintered in
recent years.
“The 15-year marriage
now seems in
trouble after the EU
initiated an Article
7 procedure against
the country, citing
Hungary’s - or really
PM Orbán’s - evertighter
restrictions on
free media, judges,
academics, minorities
and rights groups.
The two sides could
find it challenging
to reconcile their
differences next year,
leading to Hungary
exiting the bloc”.
10
ASIA INTRODUCES
A NEW RESERVE
CURRENCY TO SHIFT
AWAY FROM THE US
DOLLAR
Saxo predicts Asia
could launch a digital
reserve currency in
an effort to alleviate
its dependency on
the US dollar.
“To confront a
deepening trade rivalry
and vulnerabilities
from rising US threats
to weaponise the US
dollar and its control
of global finances, the
Asian Infrastructure
Investment Bank
creates a new reserve
asset called the Asian
Drawing Right, or ADR,
with 1 ADR equivalent
to 2 US dollars, making
the ADR the world’s
largest currency unit,”
the firm wrote.

HOW THE
WAY WE
INVEST WILL
CHANGE
HOW WE ARE CHOOSING
TO INVEST OUR MONEY HAS
BEEN INFLUENCED BY GLOBAL
ECONOMIC CHANGE
When you are investing for your financial
future, you tend to be a little more protective
of your capital than if you were a professional
trader for example.
These days, most of us are investing for
a reason, which can range from a house
purchase through to retirement. Here we take
a look at investment strategies designed for
people at different stages of life.
INVESTING WITH PURPOSE
When you have a specific goal, you can tailor
your investing to achieve it
Why are you investing? It’s okay if you have
many different answers to this question, but
there is a big problem if you have no answer at
all. Investing is like driving—it is best done with
your eyes open.
Having clear reasons or purposes for investing is
critical to investing successfully. Like training at
a gym, investing can become difficult, tedious,
and even dangerous if you lack focus.
Here are the most common reasons for
investing:
RETIREMENT
Your Social Security payments were never
intended to fully fund retirement, and there are
questions about what will happen to payouts in
years to come. Because of this, investing can be
a tool to help you carve out a more secure path
to retirement.
Three maxims apply to investing for your postwork
years:
The more years between today and your
retirement, the more years your money has
to grow. Keep in mind that you are fighting
inflation when saving for retirement. In other
words, if you don’t invest your money in a way
that outpaces inflation, it won’t be worth as
much in the future.
The older you are when you start, the more
risk-averse you will have to be. This means you
will likely use guaranteed investments, such as
debt securities, which have lower returns. By
contrast, start young means you can take larger
risks for (hopefully) larger
gains.
The earlier you start learning
about investing, the easier it
will be to pick it up. Financial
professionals are difficult to
choose and costly to keep, so
it is best to manage your own
affairs whenever possible.
Investing for retirement is
similar to any long-term
investing. For the majority
of your investment capital,
you want to find quality
investment vehicles to buy
and hold. Your retirement
portfolio will actually be a
mix of stocks, debt securities,
index funds, and other
money market instruments.
This mix will change as you
do, moving increasingly
toward low-risk guaranteed
investments as you age.
ACHIEVING SHORT-TERM
FINANCIAL GOALS
You don’t always have to think
long term. Investing is as much
a tool for shaping your present
financial situation as it is for
forming your future one. Do
you want to buy a BMW next
year? Do you want to go on a
cruise? Wouldn’t a holiday that
was paid for with dividends feel
nice?
Investing can be used as a way
to enhance your employment
income, helping you buy the
things you want. Because
investing changes along with
the investor’s desired goals,
this type of investing is not like
retirement investing.
Investing to achieve financial
goals involves a blend of
long-term and short-term
investments. If you are investing
in the hope of buying a house,
you will almost certainly
be looking at longer-term
instruments. If you are investing
to buy a computer in the New
Year, you may want short-term
investments that pay dividends
or some high-yield bonds (also
known as junk bonds).
The caveat here is that you
need to pinpoint your goals
first. If you want to go on a
holiday in a year’s time, you
have to figure out the cost of
the vacation and then come
up with an investing strategy
to meet that goal. If you don’t
have a set goal, the money
that should be going into that
investment will doubtless be
used for other purposes that
seem more pressing at the time
(Christmas presents, a night
out, and so on).
Investing to achieve financial
goals can be exciting and
challenging. Combining the
pressure of time constraints
with the fact that you’re not
usually dealing with large sums
of vital money (as in retirement
investing), you may be less
risk-averse and more motivated
to learn about higher-yield
investments (growth stocks,
shorting, etc.). Best of all, a
tangible reward is at the end.
Reasons Not to Invest
Just as there are two main
reasons to invest, there are two
big reasons not to invest: debt
or a lack of knowledge.
With debt, it is a simple matter
of maths. Imagine you have a
£1,000 loan at 9% interest, and
you get a £1,000 bonus. Should
you invest it or pay down the
debt? Short answer: Pay down
the debt. If you invest it, the
money has to make a return
of well over 9% (not counting
commissions and fees) to make
it worthwhile.
When it comes to lack of
knowledge, it is a matter of
“fools rush in where angels fear
to tread.” Throwing your money
haphazardly into investments
you don’t understand is a sure
way to lose it quickly. To use an
exercise analogy, you don’t walk
into a gym and lift 100kg on
your first day. Your introduction
to investing should follow the
same incremental process as
weight training.
The Bottom Line
Allow for change, and review
your goals periodically. Your
reasons for investing will
change as you go through
the ups and downs of life. This
is important to understand
because the only alternative
is to invest with no purpose,
which will likely result in
investing practices that reflect
your uncertainty and cause
your returns to suffer.
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