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
elephant appealPrince William signs up for our charity appeal
elephant appealSo says man jailed for cutting off dead elephant's tusks
booksWe examine the best titles for teens
scienceResearchers teach border collie to understand sentences using more than 1,000 words
booksA Christmas story in six parts
travelWill high-value tourism help the workshops of this Renaissance city?
Geoffrey Macnab does not like the comedian's big screen debut
Top PR exec Justine Sacco under fire for sending racist tweet before flying to Africa
French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
Ten best places to live in the UK: Hart in Hampshire takes top spot
'Untrue statements' anger over work to make H5N1 bird-flu virus MORE dangerous to humans
Paul Walker's daughter Meadow attends Justin Bieber Believe premiere
- 1 Top PR exec Justine Sacco under fire for sending racist tweet before flying to Africa
- 2 French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
- 3 Sun will 'flip upside down' within weeks, says Nasa
- 4 The publisher who played with fire: the battle for control of Larsson's £30m legacy
- 5 Police seize possessions of rough sleepers in crackdown on homelessness
- < Previous
- Next >
iJobs Money & Business
£59999 - £80001 per annum + Benefits: Pro-Recruitment Group: A Top 10 firm in ...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Project Manage...
£60000 - £90000 per annum + benefits + bonus: Harrington Starr: Business Analy...
£Negotiable: Citifocus: High calibre individual with institutional client serv...