UK - Equities offer good value at their current levels, believes Tilney Investment Management.
Director Peter Bickley says with the rate of inflation predicted at 2.5% per annum, cash will halve in value over a span of 28 years.
Bickley – writing in the November issue of Tilney’s Economics and Strategy newsletter – added: “Remember that not only will the capital halve, the real value of the nominal rate of interest will do too.”
Bickley explained that investors must ask themselves three questions:
- Am I primarily a “natural” equity investor?
- What are the timescales?
- How do I feel about current valuations?
Bickley said: “Provided that the conditions of principles are satisfied – especially that the timescale for envisaged investment is not just short-term – then we see no deterrent to following the natural route of investment in equity.”
The secretary of state for work and pensions has told MPs clawback and avoidance measures could be imposed for the people responsible for driving Carillion over the cliff.
Occupational pension provision has continued to grow in value, but there remains large variance in incomes across the pensioner age group, according to latest government data.
Defined benefit (DB) schemes could have an aggregate surplus by 2021 under Pension Protection Fund (PPF) projections, its strategic plan for 2018 to 2021 reveals.
Investment consultants are failing to recommend products that outperform net of fees, the Competition and Markets Authority (CMA) has said as its investigation into the market continues.