Here’s how this works…
Each week, we will introduce you to one new investing term that you’ll need to know if you want to start investing.
Then we’ll provide a summary of the past week’s financial news and explain why it’s relevant to you as a beginner investor and, more importantly, how you can use this knowledge to your advantage.
So, let’s get cracking!
TERM TO LEARN
A MARKET INDEX IS A HYPOTHETICAL PORTFOLIO OF INVESTMENT HOLDINGS THAT REPRESENTS A SEGMENT OF THE FINANCIAL MARKET (STOCKS, BONDS, OR OTHER ASSETS). IT SERVES AS A TOOL TO MEASURE AND TRACK THE PERFORMANCE OF A SPECIFIC MARKET OR SECTOR. THE VALUE OF AN INDEX IS CALCULATED BASED ON THE PRICES OF ITS UNDERLYING HOLDINGS. MARKET INDEXES ARE CRUCIAL FOR INVESTORS BECAUSE THEY OFFER INSIGHTS INTO MARKET TRENDS AND SENTIMENTS.
Some examples of market indexes include:
FTSE 100: is an index that represents the 100 largest companies by market capitalization listed on the London Stock Exchange.
S&P 500: Tracks the performance of the 500 largest U.S. companies by capitalization.
Dow Jones Industrial Average: Tracks the performance of 30 large, influential companies listed on U.S. stock exchange.
Nasdaq 100: Tracks the performance of a group of technology-heavy stocks.
INVESTMENT NEWS FOR BEGINNERS
Market navigator: Week of 1st December 2025.
Recent US data shows slower retail spending and weaker consumer confidence, which has increased expectations that the US Federal Reserve will cut interest rates in December. US stock markets, especially big tech (Nasdaq 100), bounced strongly on hopes of lower rates, while market volatility fell. China’s manufacturing and services activity slipped into contraction, showing demand is weak and raising doubts about hitting its growth target. Gold and silver prices surged, helped by rate‑cut expectations and demand for “safe-haven” assets
Why this matters to you…
Global moves affect UK portfolios. Many UK funds and pension schemes hold US tech and emerging markets, so sharp rallies or drops overseas feed directly into UK investors’ returns.
Rate expectations drive asset prices. Simply raising the odds of a rate cut can lift stocks and precious metals, even before any actual decision.
China matters for global growth. Slower Chinese activity can weigh on commodities, exporters, and global earnings, which can hit diversified funds.
What you need to do…
Look at the bigger picture. Even if you only buy UK funds, understand that US and China headlines can explain sudden moves in your portfolio.
Learn the “rates → markets” link. When central banks are expected to cut rates, growth stocks and gold often benefit; this is a useful rule of thumb for beginners following macro news.
Stay diversified. This week shows why holding a mix (equities, bonds, maybe some commodities via funds) can smooth out shocks from any one region.
FTSE UK Index Series - Indicative Quarterly Review Changes December 2025.
The FTSE 100 is the list of the 100 largest companies on the UK stock market. Every three months, this list is reviewed (reshuffled). Based on current data, advertising giant WPP is expected to be demoted (relegated) to the FTSE 250 because its value has dropped. Replacing it will likely be property developer British Land, which is being promoted back into the top 100.
Why this matters to you…
If you invest in a "FTSE 100 Tracker Fund" (a very common beginner investment), your fund will automatically sell WPP and buy British Land. You don't need to do anything, but it’s good to know what companies you own.
Being kicked out of the FTSE 100 is seen as a blow to a company's prestige and can lead to more selling as big funds dump the stock.
The rise of a property company (British Land) suggests investors are feeling more confident about the UK property market again.
What you need to do…
Understand that ‘passive’ investing still involves rules and changes. Index funds are called passive, but the underlying index is actively maintained using clear rules.
Check your holdings. If you own individual shares in WPP, be aware that the share price might be volatile as index funds are forced to sell it.
As a beginner investor, focus more on your asset allocation (how much in UK vs global, shares vs bonds vs cash) than on every quarterly index reshuffle.
US Fed ends QT with $13.5b liquidity pump, crypto market rally ahead?
The Federal Reserve (the "Fed"), which is the central bank of the U.S., is expected to end a program called Quantitative Tightening (QT) in December. Think of QT as the Fed "draining" money out of the economy to cool it down. Ending QT means the Fed is no longer sucking money out of the system, which could make it easier for money to flow into stocks and cryptocurrencies. This might lift prices for growth-oriented investments, similar to how looser conditions boosted markets in past years, helping beginners see higher returns on balanced portfolios that include some stocks or crypto.
Why this matters to you…
When the Fed ends QT and starts QE, it increases liquidity. Liquidity refers to how much cash is flowing around in the financial system. For beginner investors, this is important because more cash in the system often leads to higher stock and crypto prices, as that extra money searches for a place to be invested.
The transition period (December) could be rocky. Historical data (like the 2019 example) shows that markets often get "bumpy" or volatile when the Fed changes its policy. Beginner investors might see their portfolio value swing up and down wildly during this time.
What you need to do…
Learn to watch what the Federal Reserve does, not just what price a stock or coin is today. If the Fed is adding money (QE), it is generally a "green light" for markets over the long term. If they are removing money (QT), it is a "red light."
Thanks for reading this 13th edition.
It’s been a week of central banks playing “will they, won’t they,” the FTSE doing musical chairs, and the Fed quietly turning off the QT money hoover.
If your head’s spinning, you’re not alone – but remember, you don’t need to predict the next move, just keep showing up, stay curious, and invest regularly.
Until next time, may your coffee be strong, your fees be low, and your portfolio slightly less chaotic than the news.
See you next week!