Executive summary
- Although it is coming down globally, inflation remains high here in the UK.
- As a result, the Bank of England is expected to put interest rates up to at least 6% p.a. Whilst this makes cash rates look more attractive on the face of it, cash has historically often returned below inflation. In the past, the only way to grow savings ahead of inflation has been to invest.
- The good news is that higher rates also imply higher potential returns for many asset classes, bonds now offer higher yields than they did in the past. They often have higher yields than cash rates, and there is also potential for capital growth on top of the yield.
Investment Manager, Mike Deverell, discussed all of this in more detail at our latest Market update event, fill in the form below to access the recording.
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Recorded July 2023
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The content contained in this video represents the opinions of Equilibrium Financial Planning and Equilibrium Investment Management and in no way constitutes a solicitation of investment advice. It should not be relied upon in making investment decisions and is intended solely for the entertainment of the reader. Past performance is not a guide to future returns. The value of your investments can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested