Personal Finance: Brian Tora
Saturday 28 August 1999
But you only really gain if you own residential property as an investment or you are anticipating trading down. Meanwhile, a strong housing market may encourage the Bank of England to put up interest rates, with all the side effects that can have for business and markets.
Then again, higher interest rates are not necessarily bad news. More people rely on deposit interest in this country than in, say, the US. And higher interest rates could mean better annuity returns.
But before you sell all your equities and place the money on deposit awaiting the opportunity to buy gilts on double-digit yields, a cautionary word: this time is different. Sure, markets will fluctuate, but do not anticipate the same volatility as in the past.
Back in the 1970s we saw base rates travelling between 5 per cent and 15 per cent - in both directions. Admittedly both these extremities have been touched in the 1990s, but the Government has got the message.
So where do you go for income? Gilts are the safest bet, but I am afraid you will have to content yourself with yields no more than 5-5.5 per cent.For the more adventurous, there are products offering even higher yields based upon the derivatives market.
Brian Tora is Chairman of the Greig Middleton Investment Strategy Committee
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...