After buying a house, many people feel a desire to try to repay their mortgage as quickly as possible. This may be because overpaying a mortgage each month will reduce the amount repaid in the long run, or because it means the person in question is mortgage-free sooner than they otherwise would be. However, the…
With inflation moving back up to 2.9% in August, obtaining a real return may become more difficult for investors. Certainly, there are a number of popular income shares which are likely to offer income returns in excess of inflation. However, they may become more in-demand if inflation keeps rising, and this may cause their yields…
Defensive stocks such as utility companies could become more popular over the medium term. Instability in North Korea may escalate in the coming months, and this may create an increasingly risk-off attitude among investors. Higher inflation may also cause utility stocks to become more popular, with their high yields and bright dividend growth prospects having…
The UK property sector offers a significant investment opportunity for the long term. There is a fundamental lack of supply of housing, while demand remains high. Population growth is forecast to significantly exceed the number of new homes built over the next decade, so this situation is unlikely to change. However, within the UK property…
The world of pensions can be a minefield. There is a wide range of options available to individuals, with different tax implications and flexibility in the long run. However, two of the most common investment vehicles for retirement are ISAs and pensions. Which one will help you reach retirement the fastest? Tax advantages One of…
Dividend growth has become a much more important issue for many investors now that inflation has risen from 0.5% to 2.6% in the last year. The problem, though, is finding companies with high and reliable dividend growth rates. UK-focused companies come with additional uncertainty surrounding Brexit, for example, which means international stocks may be a…
The UK retail sector faces a highly uncertain future. A weaker pound has pushed inflation gradually higher over the last year. It is now 60 basis points higher than the rate of wage growth. Therefore, consumer spending is likely to come under a degree of pressure. Alongside this, the scope for an interest rate rise…
The quad play sector has thus far been a mixed bag for TMT operators. While it was seen as a means of diversifying into new product areas and generating additional sales from cross-selling opportunities, for BT (LON:BT.A) and Talktalk (LON:TALK) it has been a different story. Both companies have lagged the FTSE 100 over the…
For many people, investing in property may seem prohibitively expensive at the moment. After all, the price to earnings ratio of residential property in London is 12.9. This makes engaging in buy-to-let investments which have the aim of beating inflation rather difficult. It’s a similar story in commercial property. It remains relatively expensive, and this…
Recovery stocks can be among the most profitable investments. One reason for this is that the market usually expects disappointing financial performance from them, which generally means low valuations. If the companies in question are able to beat market forecasts and deliver a sustained turnaround, it can lead to above-average valuations. The end result is…
