Say you were looking to invest your money today.
Where would you put it?
Government bonds have been booming for three decades.
The current yield on 10-year UK gilts is around 1.2%.
With inflation at nearly 3%, you’d be locking in a real-terms loss.
Gold hasn’t gone anywhere for years now.
Hold cash? With inflation taking hold and central banks only too ready to go to the printing presses in a time of crisis, that seems like a sure way to lose money over the long term.
For most people, the most obvious answer would be stocks.
Looking at this current bull market, it’s not hard to understand why.
In May this year the FTSE 100 passed 7,500 for the first time – doubling since 2009.
Across the pond, the value of the S&P 500 has almost quadrupled in that time.
How can you turn down that sort of return?
Many investors can’t. They’re still piling in.
Market sentiment is sky high.
Pessimism is out.
Each week brings a new high.
Onwards and upwards…
Regards,
Nick O’Connor
Publisher, Southbank Investment Research
Fund manager’s urgent letter to UK investors
A critical stock market indicator has just reached a point that’s only been seen twice before in history.
The first time was the Wall Street Crash of 1929…
The second was the dotcom bubble in 2000.
Both times saw British stocks halve in value.
Tim Price explains what you need to do with your money.
Risk Warning
Your capital is at risk when you invest in shares – you can lose some or all of your money, so never risk more than you can afford to lose. Past performance and forecasts are not reliable indicators of future results. Bid/ offer spreads, commissions, fees and other charges can reduce returns from investments. There is no guarantee dividends will be paid.
Profits from share dealing are a form of capital gain and subject to taxation. Tax treatment depends on individual circumstances and may be subject to change in the future.
Investment Director: Tim Price. Editors or contributors may have an interest in shares recommended. Information and opinions expressed do not necessarily reflect the views of other editors/contributors of Southbank Investment Research Limited. Full details of our complaints procedure and terms and conditions can be found on our website, southbankresearch.com.
London Investment Alert is issued by Southbank Investment Research Ltd.
Southbank Investment Research Limited is authorised and regulated by the Financial Conduct Authority. FCA No 706697. https://register.fca.org.uk/.
