Index-Linked bonds – an attractive prospect… or not?
FPC has warned that inflation should be feared and the combination of high inflation and very low interest rates for money held on deposit has led many savers to look for better returns elsewhere.
Sadly, the recent issue of National Savings and Investments (NS&I) tax free Index Linked Savings Certificates proved too popular and were quickly withdrawn.
Not missing a trick, this gap in the market is being filled by similar-looking offerings from several major banks and even the National Grid and the Post Office.
But are they as attractive as they might first appear?
Moody’s downgrade in perspective
One of the main financial stories of today is that Moody’s (an internationally recognised credit rating agency) has downgraded the credit rating of 12 UK financial firms. Although this may cause you some initial concern, we thought you might sleep easier with some relevant facts.
Midsummer madness in markets
Peter Stanyer
Independent Economic Consultant and author of the ‘Economist’s Guide to Investment Strategy, How to Understand Markets, Risks, Rewards and Behaviour’. To find out more about Peter’s extensive career, click here
Yet again the financial markets have delivered great volatility and uncertainty when many investors would prefer to be relaxing on holiday. US politicians have made a mess of raising the legal limit on Federal government debt, which has to happen time and again because the budget is so far from balance.
National Savings Certificates back on sale!
New issues of saving certificates
NS&I has reintroduced new Issues of its Index-linked Savings Certificates and Fixed Interest Savings Certificates for general sale. They are only offering a 5-year term, and this will only be available direct from NS&I.
“Ditch corporate bond funds now, investors are warned”
But don’t believe the hype
Some may have noticed this sensationalist headline in yesterday’s Daily Mail:
Career journalist James Salmon supports this sweeping statement by referencing: “European financial difficulties, high inflation… and the threat of rising interest rates” – none of which are trivial concerns. Our view, however, is somewhat different.
The Spending Review – implications for investors
Just like the Credit Crisis, the Spending Review will have an impact on our lives for many years to come and, not surprisingly, it has caused much debate. We asked independent economic consultant Peter Stanyer, author of The Economist: Guide to Investment Strategy, for his views on how our investment clients might be affected.
You can read our quick five point summary together with our comment on his findings and you can also download Peter’s paper in full.
Market Commentary November 2009
In late November 2008, in the wake of the bankruptcy of Lehman Brothers, the world’s financial system was in meltdown. In Britain: banks failed, house prices crashed, interest rates plummeted, Sterling collapsed (£1.00 traded as low as $1.35, down from $2.11) and the stock market shed billions daily as investors panicked. Read more
