zaterdag 6 januari 2018

Where to put your cash today


NICK O'CONNOR



Dear Reader,
 
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 last 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