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
DOLLAR-COST AVERAGING IS AN INVESTMENT STRATEGY WHERE YOU INVEST A FIXED AMOUNT OF MONEY AT REGULAR INTERVALS REGARDLESS OF THE ASSET’S PRICE.
Key aspects of dollar-cost averaging:
Regular investments: You invest the same amount of money at set intervals of your choice.
Price fluctuation: When prices are high, your fixed amount buys fewer shares. When prices are low, you buy more shares.
Average cost: Over time, this approach can lower your average cost per share compared to making a single lump sum investment.
Benefits of dollar-cost averaging:
Risk management: It helps reduce the impact of market volatility on your investments.
Removes emotions: It removes the need to try and time the market, reducing emotional decision-making.
Increased accessibility: It allows you to start investing with smaller amounts of money regularly.
Example:
Let’s say you invest £100 monthly in an ETF:
Month 1: Price is £10 per share = you buy 10 shares.
Month 2: Price is £8 per share = you buy 12.5 shares.
Month 3: Price is £12 per share = you buy 8.33 shares.
After three months, you've invested £300 and own 30.83 shares.
Your average cost per share is £9.73, which is lower than the average price of £10 over the three months.
INVESTMENT NEWS FOR BEGINNERS
10 Takeaways from ‘Bitcoin Investor Week’.
A big bitcoin event called ‘Bitcoin Investor Week’ recently took place in New York, bringing together thousands of investors and more than 45 speakers to talk about bitcoin, crypto, and the economy. While the general public often views Bitcoin as a get-rich-quick scheme or a volatile gamble, professional investors are now treating it as a serious, long-term financial tool. Despite recent price drops, big-money investors are more excited than ever. They aren't focused on daily price swings. Instead, they are looking at how Bitcoin fits into the global economy, how new laws might make it easier to use, and how it acts as a form of digital gold in an era where traditional money (like the Dollar or Euro) is losing its value due to inflation.
Why this matters to you…
For the first time, major banks and investment firms are building pipes to move money into Bitcoin. For a beginner investor, this means Bitcoin is becoming more like a regular stock or bond. Stable enough for professionals to buy, which usually leads to more growth over time.
When big, regulated players are involved, it usually means more liquidity, better products (like ETFs), and more ways for everyday investors to get exposure through traditional accounts.
What you need to do…
Understand digital scarcity. A key lesson is that there will only ever be 21 million Bitcoins. Unlike regular money, no one can print more. As a beginner investor, understanding that scarcity equals value is a fundamental investing concept.
Watch the laws, not just the price. The article mentions new laws (like the Clarity Act) for stablecoins (digital dollars). For a beginner investor, this is a signal that governments are trying to make the industry safer. When a government gets involved, it often means the wild west era is ending, and the professional era is beginning.
Small positions are okay. You don't need to go all-in. Even a small amount (like 1% or 2% of your portfolio) is how many professional investors start, allowing them to benefit from growth without risking a significant chunk of their financial future.
China’s resurgence means investors are scrambling to return.
China’s stock market has done badly for years, then bounced back starting in late 2024 and moving into 2025. Fundamentally, the Chinese government shifted its approach, launching major stimulus packages. Which is just a fancy way of saying they are pumping money into the economy to jumpstart growth. Additionally, a ‘DeepSeek moment’ occurred where China proved it is becoming a global leader in Artificial Intelligence (AI) and innovation, not just a factory for cheap goods. Chinese companies have been investing heavily in research and development (R&D), increasing spending by around 20% a year for about 15 years, which is now starting to show in areas like AI, smart factories, robotics, pharmaceuticals, and solar energy. As such, China has gone from uninvestable to interesting again, and many investors who stayed away are now rushing to get back in because they see potential value and growth.
Why this matters to you…
Chinese stocks are trading at a 40% discount compared to U.S. stocks. For a beginner investor, this means that while the U.S. market (like the S&P 500) might feel expensive, China offers a chance to buy potentially high-quality companies at a lower entry price.
China is moving from making stuff to creating high-tech. If you are interested in the future of AI, green energy (solar), or electric vehicles, China is a dominant player that can't be ignored.
What you need to do…
Don't follow the crowd blindly. A few years ago, everyone was saying: ‘don't touch China’. Now, everyone is scrambling to return. Beginner investors should learn that the best time to look at a market is often when it is unloved and prices are low, rather than when it is already in the news for a massive rally.
Prepare for volatility. Investing in emerging markets like China is like a roller coaster. The gains can be high, but the drops are sharp. Only use long-term money for these types of investments.
The SaaS apocalypse or the SaaS evolution?
For the last decade, the Software-as-a-Service (SaaS) model (where companies or individuals pay a monthly fee to use a tool) has been the gold standard. But with the recent release of powerful new AI "agents" (like Claude Cowork and GPT-5.3), this model is under threat. These AI tools are so advanced that they can perform tasks across different apps, potentially making many traditional software subscriptions unnecessary. AI can now do the work rather than just providing a tool for a human to do the work. New AI tools allow even non-programmers to build their own custom software quickly and cheaply. However, this isn't the end of software, but an evolution. Companies that focus on complex, regulated industries (like healthcare or law) or those that shift from charging per person to charging for results are expected to survive and thrive.
Why this matters to you…
This explains why many popular tech stocks (like Salesforce, Atlassian, or HubSpot) have seen their prices drop recently. It shows how a so-called safe investment can change quickly when technology shifts.
Investors are moving money away from application software (the apps you see on your screen) and toward AI infrastructure (the chips, data centers, and base AI models that power the agents).
What you need to do…
Check your portfolio's tech heaviness. If you own tech-focused index funds or ETFs, be aware that they may be going through a period of repricing. Don't panic, but understand that the rules for these companies are changing.
Look for companies with ‘Moats’. A moat is a competitive advantage that protects a company. In this new era, a moat isn't just having a cool app, it's having unique data or being deeply embedded in legal/regulatory requirements that an AI can't easily replace.
Thanks for reading this 21st edition.
Get ready for a busy week on the markets!
All eyes are on the Fed’s meeting minutes this Wednesday to see if those interest rate cuts are actually coming, while big inflation updates from the UK and Canada will tell us if prices are finally behaving.
On the corporate side, it’s a massive week for the heavy hitters like Rio Tinto and BAE Systems reporting earnings, plus Apple’s shareholder meeting is coming up to give us the latest on their AI plans.
Whether you’re into tech or mining, there’s going to be plenty of data to move the needle.
See you next week!