One of the major challenges facing investors is how to generate an income return which beats inflation. This has been a problem since interest rates declined to historic lows following the financial crisis, but is now even tougher because of the rise in inflation. While interest rates could realistically edge upwards in future years, higher-yielding shares could continue to be the best solution.
Inflation currently stands at 2.9%. This has risen more than 5x since the EU referendum, with the decision to leave the EU being a key reason for its increase. Confidence regarding the UK's economic outlook has deteriorated, leaving the pound weaker by around 14% versus the dollar since a year ago. This has pushed import prices higher, which has gradually been passed on to end consumers via higher prices.
by Jim Mellon| Economics| 6 mins. to read I was recently invited to a Conservative Party lunch hosted by the City and Westminster Tory Association. It was a jolly affair, with hundreds of well-oiled attendees, and despite the recent electoral setback, the mood appeared quite upbeat.
by Victor Hill| Economics| 12 mins. to read The FTSE-100 has been gliding around the stratospheric 7,500 level. So everything must be alright, then? Not necessarily. The FTSE-100 is powered by international market sentiment and the relative weakness of the Pound, which makes British blue chips look good value.
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