Don’t worry about zero UK inflation: The outcome of the election will be far more significant for markets April 14, 2015 Britain narrowly avoided heading into deflation last month, with prices unchanged compared to a year ago. But over the past six months, prices have fallen by 1 per cent annualised after adjusting for seasonal trends. Should we worry about deflation and the prospect of falling prices? Well, after stripping out some of the more volatiles [...]
Buy-to-let: It’s not all about capital growth March 17, 2015 The stability of rents against average incomes makes for an attractive proposition. The UK – and London in particular – has been the beneficiary of large inflows of global capital into property in the last few years. While most of these funds have flowed into commercial real estate, a growing proportion is being directed into [...]
Pound strengthens as euro slides: Should holidaymakers stock up now? March 10, 2015 With a range of pre-paid cards on the market, there’s no need to hoard currency in your home. The pound has reached a seven-year high against the euro – and with the Easter break fast approaching, could now be a good time to lock in favourable rates for holiday money? The euro has been [...]
Extraordinary central bank policy means volatile times are coming for investors – Investment Comment March 10, 2015 What is the true value of the investments in your portfolio? The prices of traded financial assets in markets are constantly updated as they are bought and sold. This is usually a basic and constant function of markets. This process has been overwhelmed in recent years, however, by extraordinarily loose monetary policy, cheap credit, and [...]
Six years of ultra-low interest rates: Where can you find income? March 3, 2015 Consider markets buoyed by QE, and remember that cash will be a lonely place for some time. It's an anniversary many UK savers will wish they never had to mark. Six years ago this month, the Bank of England cut interest rates to a record low of 0.5 per cent, as Britain grappled with the [...]
Why the US bull market still has further to run – Investment Comment February 24, 2015 Recent economic data from the US clearly indicates that the world’s largest economy is now much closer to reaching self-sustaining growth. The Institute for Supply Management’s (ISM) Manufacturing Index continues to show expansion, with its latest reading at 53.5 (albeit down fractionally from the previous month). The services-oriented ISM Non-Manufacturing Index – representing a much [...]
Eastern promise: Keys to investing in Asian markets February 17, 2015 Emerging Asia was one of the best performing regions in the five years leading up to the financial crisis, delivering a 20 per cent return per year in sterling terms. And despite the fact that, over the past two years, the region has underperformed developed markets, it remains a favourite place for UK investors to [...]
Investing around the election: What should you think about? February 10, 2015 Be wary of specific sector bets, but look to policy changes around smaller firms for opportunities. With less than three months to go until the General Election, we’re no closer to a clear outcome. The two largest political parties have almost identical support in the opinion polls – both are hovering at around 32-33 per [...]
Income investing: Why it’s more vital than ever February 3, 2015 GIVEN the relentless media attention that record low interest rates have received over the past couple of years, I was genuinely flabbergasted to learn that less than half of UK investors (just 44 per cent) could correctly explain the term “income investing”, according to a recent survey conducted by JP Morgan Asset Management. It seems [...]
Rushed off your feet? How to invest when you’re very busy January 27, 2015 Consider a multi-manager fund as a time-saving option. We all know how difficult it can be to juggle the demands of modern life – and your financial affairs may feel the squeeze from time to time. “In our experience, a great many people who started out as DIY investors with bags of enthusiasm conclude that [...]