2017 looks set to be a challenging year for investors due to the risks posed by a Trump Presidency and higher inflation. New policies pursued by Trump could lead to greater uncertainty. Higher than expected US interest rates may be a consequence of rising inflation resulting from the US running a larger budget deficit. Similarly, uncertainty in the outlook for world trade could lead to damaged confidence across the global economy.
Brexit is already forecast to spur inflation to around 2.7% this year. This could leave a number of high profile income stocks unable to offer real terms rises in dividends. Therefore, the world of income investing could be turned on its head, with a high yield no longer deemed sufficient unless it comes with inflation beating income growth.
Against this backdrop, companies that are able to register consistent and stable returns while also raising dividends at an above average rate could prove popular. In my view, Compass Group (LON:CPG) ticks these boxes, while also offering an appealing valuation and long term growth potential.
by Zak Mir | Trading| 1 mins. to read It appeared that for a while there was a degree of negative sentiment associated with medical imaging group Feedback (LON:FDBK), but the background noise now looks to have finally cleared, so to speak.
by Nick Sudbury | Funds| 4 mins. to read December saw the launch of a new closed-ended fund that will make secured, direct loans to small and medium sized companies that are mainly based in the UK.
by Zak Mir | Trading | 1 mins. to read The latest newsflow regarding Shoat's Creek reminds us that Red Rock Resources (LON:RRR) is firmly back in favour as far as investors and traders are concerned.
by Richard Gill | Equities | 8 mins. to read As discussed in my article for January's edition of Master Investor Magazine, 2016 was a great year for small cap shares. The AIM All-Share rose by an impressive 14.3%, the FTSE Small Cap Index surged by 11% and dozens of individual stocks grew in value by more than 100%.
by Evil Knievil | Evil Diaries | 1 mins. to read Apparently, Phil Bentley has decided to effect an external and supposedly independent review of accounting at Mitie (LON:MTO). This is ridiculous since the current auditors have been over matters several times already.
Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd. does not accept any liability for any losses suffered by any user as a result or any such descision.
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