Still at a loss on where best to Invest Your money? Here are some things to consider
Fri 31st Mar 2017
It’s easy to be confused with the whirlwind economy that has characterised the UK markets recently. Between Donald Trump’s erratic foreign policies and the UK Prime Minister’s decision to trigger Article 50 on March 29, it almost seems like we are left with no discernible options.
While it may look that way, you’ll be happy to know that all is not as bad as it seems. Yes, it is a smart thing to apply caution in your investment, but remaining totally inactive wouldn’t help either.
The property market
Personally, it may not be wise to jump into any major property investments at this time because there is evidence of a flatline in sales following the Brexit action ahead. A wait-and-see approach is advisable so investors can gauge the direction of the market. Hopefully with time, things will pick up again
On the contrary, if you are a first-time home buyer, it will benefit you to take advantage of the slow housing market. However, do all the necessary reading up on mortgages before you take make your move. Use dedicated tools like mortgage calculators to get an idea of the costs. Decide whether a fixed or variable mortgage rate would be suitable for you and calculate the appropriate interest over the coming months
The UK Stock market
Last year, it was difficult for fund managers who strove to meet the UK stock market index. However, one fund manager managed to outperform the rest. The fund manager of JOHCM UK Dynamic is building a strong track record of performance by applying a well-defined method of investments across the UK stock market.
Although the fund is focused on generating growth, and only invests in companies that pays low interest-rate dividends, they are one to watch out for this year.
Smaller companies in the US
While Donald Trump is generally everywhere with his tweets, some of his business policies are aimed at stimulating the US economy. If you are a long-term investor, you may consider extending your exposure to smaller companies in the US.
Unfortunately, few UK investors have fund exposures in this part of the global economy, even though the small capital market sector of the US is a lot bigger than Europe’s stock market.
International public partnerships
Real assets such as infrastructure have a natural buffer against inflation, because the income they generate from rent tends to increase with inflation. However, the market hasn’t completely factored this into the class of assets.
An example of an infrastructure trust that buys directly from global projects is International Public Partnerships. The number of projects within the trust currently stand at over 110 and are financially supported by the public sector.
They invest in specific projects such as hospitals and schools. While they may incur some construction risks, they also drive growth on capital and income.
There is no investment without its risks, but while some are high at the moment, there are others with considerable risks of exposure.
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