In a wide‑ranging conversation on Share Talk, Zak Mir sat down with Clem Chambes, CEO of aNewFN.com, to pick apart market narratives, technology trends and the practical fallout for investors. Clem brings his trademark scepticism, dry humour and strategic thinking to a discussion that ranges from the silliness of punditry to a single, clear investment thesis.
Markets favour straightforward thinking. Direction matters far more than perfect timing. Get the broad trend right and you win far more often than you lose. That, in a sentence, is the investment philosophy worth stealing.
Direction versus timing: the core idea
There are two separate problems in investing. First, which way is the market heading? Second, when will it reach its highs and lows? Most people obsess about timing and lose sight of the first problem. Knowing direction is the real edge. If the market is moving up, stay invested. If it is sliding, protect capital. Simple, blunt and effective.
In the market, all you need to know is which way the market’s going. Is it going up or is it going down?
That simplicity does not remove hard choices. You still need conviction and discipline. But once you accept that direction is king, everything else becomes a decision about position size, patience and protection.
The UK market: cheap, messy and full of opportunity
The UK market looks cheap relative to global peers. That cheapness attracts capital from overseas, particularly when investors seek a hedge against a weakening dollar. Another force at work is takeovers and private equity buying assets that others undervalue. The result is upward pressure on prices even if the domestic story seems bleak.
Asset stripping and corporate disposals are not always a sign of failure. When global capital finds bargains, shareholders can be rewarded. Cheap valuations plus international interest create an environment where selective UK equity exposure can pay off.
What to watch in the UK
- Valuation gap between UK stocks and global peers.
- Corporate activity: takeovers, disposals and private equity plays.
- Currency moves. A weaker dollar can push foreign money into UK equities as a hedge.
Tax, regulation and the culture of work
Tax and red tape shape incentives. When marginal tax rates bite and paperwork multiplies, people rationally adjust behaviour — work less, move abroad, or optimise income rather than grow it. That is not a moral failing; it is predictable human economics.
Two systemic effects are worth noting: first, high effective tax rates can make extra effort mutually unattractive for entrepreneurs and executives. Second, bloated bureaucracy and HR processes add fixed costs that dampen growth and discourage small business expansion.
Tax what you do not want and subsidise what you do want. Do the reverse and you get more of the wrong things.
Practical investing philosophy: crocodile investing and value playbooks
There are sensible ways to build wealth even in uncomfortable policy environments.
Crocodile investing
Lie low, watch what floats by, and pounce when the evidence lines up. This means:
- Research ideas and form a thesis.
- Wait for confirmation — a breakout, a catalyst or a structural change.
- Scale in rather than leap in with all your capital.
Value and tax shelters
Use tax-efficient wrappers where possible: ISAs, SIPPs and equivalent shelters. Even modest contributions compounded over decades build meaningful wealth. Look for value names that are unloved but cash generative.
Example: a technology or industrial company trading at depressed multiples with strong cash flow can be an excellent long-term holding. If the market narrative turns and capital flows return to that sector, returns can be substantial.
Options and opportunism
Options and selective leverage have their place for experienced investors. Keep position sizing modest and treat volatility as optionality: when prices collapse, quality assets become bargain purchases — think of post-war art and collectible price rebounds as a reminder that deep dislocations create generational buying opportunities.
Specific names and market signals
Timely examples clarify the approach. Semiconductors and select tech names have shown breakouts. Intel, for instance, has exhibited a meaningful breakout pattern that can be treated as a buy-on-strength situation once the trend is confirmed. Always anchor a trade to a thesis: why will demand grow, and how durable is the company’s competitive position?
On the geopolitical side, defence and aerospace exposures respond quickly to conflict dynamics. If conflict intensifies, certain suppliers and contractors can see rapid revenue re-rating. Allocate only what you can stomach and build positions gradually.
Tools that matter: level 2 data and real-time feeds
Market structure matters. Real-time data and level 2 order book visibility are genuine advantages for active traders and engaged investors. Having level 2 lets you see whether a move is supported by depth or is a thin flurry of orders — critical for intraday decision making.
Free or low-cost access to live data reduces friction and helps you act on moves instead of reacting after the fact. If you are building an active playbook, prioritise platforms that provide transparent order book views and timely news.
Actionable checklist for serious investors
- Decide the direction you believe markets are moving in and position accordingly.
- Use tax-efficient vehicles: ISAs, SIPPs and regular saving plans.
- Adopt crocodile investing: research, wait for confirmation, scale in.
- Keep a portion of capital for dislocations — buy quality when prices are depressed.
- Use level 2 and real-time feeds if you trade intraday or manage concentrated positions.
- Avoid overreacting to punditry; focus on fundamentals and structural trends.
Final thoughts: be on the front foot
Wallowing in pessimism is easy and, frankly, self-defeating. Better to adopt a posture of readiness. Keep disciplined savings habits, use the tax tools available, and stay alert to asymmetric opportunities. If you believe a major decline will occur, prepare capital now. When it happens, you will be positioned to buy real assets at distressed prices.
Markets can be messy, politicians more so. The investor’s job is to translate that noise into a plan: understand direction, protect capital, and be ready to act when patterns you respect emerge. Do that and the odds tilt in your favour.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
