In this edition of the Loch Fyne Financial SmarterInsight™ series we look at the current market environment and the challenges for savers and investors. When you look back it was only in the mid-2000s that some investors were beginning to doubt whether owning an investment portfolio was really worth all the risk, given that they could get around 5 to 6% by placing cash on deposit with their local bank.
Today, things are very different. The yields on lending (placing deposits and owning bonds) have been driven to all-time lows, as the UK and other world governments dropped short-term interest rates and bought back bonds from financial institutions (quantitative easing) to try to stimulate the economy and help the indebted masses – individuals, companies and banks – out of a big hole. Read more