A Rock and A Hard Place for Savers
Talk about being stuck between a rock and a hard mountain. Savers today are enjoying the paltry returns of c2.8% for instant access savings and 3% for a one year fixed bond.(1) That’s the rock. Over their shoulder is the rugged mountain of inflation squashing any potential returns they may have. Inflation currently sits at 3.5%, meaning that a basic rate tax payer will be ‘enjoying’ 2.24% whilst inflation corrodes the real value of their capital at a rate of knots.(2)
Tax Kills
I read an interesting report which showed that 10 million people in the UK (a third of the working population) are not saving for retirement. That will be an interesting demographic time bomb; you can expect strong measures in terms of employer and employee compulsion into pensions to follow.
Quantitative Easing – Your Questions Answered
Managing Director, Worldwide Financial Planning, Writes:
Following last week’s article on quantitative easing I had a number of questions which arose which I will endeavour to answer below.
Some Twinkly Lights for the Canny Investor
Managing Director, Worldwide Financial Planning, Writes:
So here we have it. A near zero interest rate for savers. Couple this with the fact banks are under pressure by regulators and markets to keep larger amounts of capital aside relative to the loans they have given, and you have a very tricky scenario.
Looking back looking forward. 2008 – 2009
What a great year that was! Will ’09 be any better or will we be wise after the event again? In many ways ’08 was no surprise, but for reasons most won’t have noticed. Noise was the biggest culprit, with everyone believing global demand was soaring. I didn’t believe that as this column explained a […]
History doesn’t repeat itself but it sometimes rhymes
Well it eventually arrived and arrived in style. That is of course the housing market smash. What was most surprising was how long it was allowed to move beyond a reasonable price before it imploded.
Interest rates will fall to 3%, the cost of living will also fall dramatically
Managing Director, Worldwide Financial Planning, Writes:
Up to last Thursday, it all made sense, even with all the falls. After that the whole thing became barmy and investor sentiment has taken over into full on fear, with stocks like Standard life trading up one day at near £3 and then down to near £2 two days later.
Markets in almost Armageddon, what’s the way forward now?
Reader Writes:
With the markets in almost Armageddon can you shine any light of hope for the way forward?
Hard Times for BRIC companies or is it all just noise?
Reader Writes:
Do you have a view on whether the BRIC companies will still outperform over the coming years or is it time to take your profits?
Economic outlook for the next six months
Reader writes
What is your outlook for the economy over the next six months to year in terms of growth?
The Shell Oil Strike
Managing Director, Worldwide Financial Planning, writes:
I can’t remember who said it, but it wasn’t me:
‘If inflation continues the two-car garage will be replaced by the two-family garage’.
Oil and Food Inflation: We Know Who Has the Silver Paintbrush for this Cloud – calling the market
Managing Director, Worldwide Financial Planning writes:
At no point in the past has there been greater confusion about the future than today. I will attempt to explain why we are in such a state of flux by explaining the real culprit behind rising food and fuel. Stay with me on this one.