Original Broadcast: The Financial Outlook for Personal Investors
As a 12th company in the Footsie this year announces a special dividend, Russ Mould of A J Bell calculates that these, taken together with cashbacks and regular dividends, have amounted to payouts of £105bn, putting the FTSE on around a 5% yield. With fewer IPOs and placings than usual and dividend cover approaching 2, he feels this ought to be supportive of the market, even if some investors might baulk at the oils, banks and miners that are the big payers.
Guests: Russ Mould
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Original Broadcast: The Financial Outlook for Personal Investors
With markets roiled by the new Covid variant and the Fed Chairman admitting inflation may not be temporary after all, Russ Mould of A J Bell asks if we are finally seeing the Taper Tantrum central banks have been so nervous about. Quoting the US Misery Index and the Fear Index, he feels investors - to whom absolutely rather than relative return is most important – should not think that what has worked for 10 years will necessarily work in future. He has some suggestions for protecting private investors' portfolios.
Guests: Russ Mould
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Original Broadcast: The Financial Outlook for Personal Investors
Russ Mould of A J Bell looks at the shakeout in UK energy companies and casts his eye across the Atlantic where President Biden has been trying to talk down the oil price. Noting that price rises might have something to do with the $14 trillion pumped into the US economy since the pandemic began, he speculates on what will happen to the oil and gas price with new exploration so frowned upon. He also looks at the second interest rate rise in New Zealand and, with 91 rises around the world so far this year, he wonders whether the Fed, BoE and ECB can continue to hold out.
Guests: Russ Mould
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Original Broadcast: The Financial Outlook for Personal Investors
Laith Khalaf, Head of Investment Analysis at A J Bell, asks if CPI rising to 4.2% indicates a return to rising prices or if it might prove relatively temporary. He looks at Shell's decision to ditch its dual-share class and commit to the UK. And he is intrigued by news that the Treasury and Bank of England are to consider a central bank digital currency, nicknamed Britcoin.
Guests: Laith Khalaf
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Original Broadcast: The Financial Outlook for Personal Investors
Russ Mould, Investment Director of A J Bell, looks behind the 30-year-high numbers for US inflation. CPI is 6.2% but the producer price index is 8.6% with intermediate producer prices up 25% and raw materials climbing 57% year on year. While high energy prices are responsible for some of that, he also points out that the capital investment of the oil majors is, despite the high oil price, at around a 20-year low. He explains the reason behind this (is oil the new tobacco?) but wonders if oil should be written off as an investment just yet.
Guests: Russ Mould
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Original Broadcast: The Financial Outlook for Personal Investors
Russ Mould, Investment Director of A J Bell, looks at the Bank of England's Monetary Policy Committee's decision to take no action on interest rates. He wonders if their "studious inactivity" is likely to prove wise and that all the evidence of mounting inflationary pressure will indeed be transient. Will we get the Goldilocks economy or has the horse already bolted through the open stable door? There must be a tipping point with interest rates in regard to equities, he says, but where will it be?
Guests: Russ Mould
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Original Broadcast: The Financial Outlook for Personal Investors
If you missed Chancellor Rishi Sunak delivering his speech on 27 October, here's your chance to hear it. Plus, read our commentary on Monday 1 November for Share Radio's perspective, including our assessment of the contrast with the mid-70s, when public borrowing last hit stratospheric levels.
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Original Broadcast: The Financial Outlook for Personal Investors
Laith Khalaf of A J Bell discusses the slight fall in inflation last month to 3.1%, pointing out the distortions caused by the pandemic the year earlier. Markets are betting on the Bank of England increasing interest rates in November, but is it likely to happen? Laith looks forward to next week's Budget, thinking investors may be hit by a hike in CGT. And he also highlights the first Bitcoin ETF launching in the US, giving Bitcoin further legitimacy.
Guests: Laith Khalaf
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Original Broadcast: The Financial Outlook for Personal Investors
Russ Mould, Investment Director of A J Bell, states the case for us heading into a period of inflation, deflation and stagflation. But which will it be? Cautioning that while it might be too early to tell for sure, investors should not expect more of what we've had for the past decade or so. Russ gives some guides to indicators investors should keep an eye on. He also reminds investors that it is always sensible to have some cash in hand - just in case.
Guests: Russ Mould
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Original Broadcast: The Financial Outlook for Personal Investors
Laith Khalaf, Head of Investment Analysis at A J Bell, discusses the recent sharp rise in gilt yields, explaining why it's happening (rising oil and gas prices and a fear of inflation) and why it is important for everyone, not just those with an interest in fixed interest securities. He also looks at the recent results from Tesco, which pleasantly surprised the market, and explains what the retailer is doing right at a time when one of its competitors has been taken over.
Guests: Laith Khalaf
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