The UK retail sector faces a highly uncertain future. A weaker pound has pushed inflation gradually higher over the last year. It is now 60 basis points higher than the rate of wage growth. Therefore, consumer spending is likely to come under a degree of pressure.
Alongside this, the scope for an interest rate rise seems to be increasing. This could be another blow for retailers; many of whom were already reporting a slowdown before the EU referendum sparked a depreciation of the pound. Therefore, demand for retail space may slow to some degree. However, with low valuations, high yields and diversified locations, shopping centre operators such as Intu (LSE: INTU) and Hansteen (LON:HSTN) could have investment potential.
by Evil Knievil| Evil Diaries |1 mins. to read I reckon that Provident Financial (LON:PFG) is a sell again at 2100p. The more one reflects upon the insane levels of personal debt in the UK the more a PFG short is an absolute sitter.
by Nick Sudbury| Funds |2 mins. to read Income investors frustrated by the low rates of interest have had to look elsewhere for alternative sources of yield. The ideal investment for anyone in this position would be a relatively low risk fund that pays a reliable inflation-linked income like a property or infrastructure investment trust.
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 decision.
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