Annual inflation as measured by the Consumer Prices Index is forecast to hit seven percent this year, so is it realistic for the core infrastructure investment trusts to keep pace?
A number of listed private equity funds have recently reported impressive results for 2021, yet their share prices have fallen as volatility has increased, creating an attractive potential entry point.
With central banks beginning to tighten it looks as though this period of easy money is coming to an end, which makes some of these sources of yield extremely vulnerable, whereas others are likely to thrive.
It looks like we may be entering a period of stagflation, with higher inflation and slowing economic growth threatening to undermine the markets, which would be an environment that demands effective diversification.
The natural resources investment trust has benefitted from the increase in commodity prices with the surge in earnings supporting a bumper yield of six percent.
The UK stock market has been out of favour for years and looks cheap relative to many of its overseas peers.
The terrible events in Ukraine and the economic sanctions imposed in response have caused widespread disruption that is being reflected in the financial markets.
Only two months into the year, we also have a war in Europe, commodities at skyrocketing prices, supply-chain disruptions and even higher consumer prices.
The crisis in the Ukraine is obviously dreadful for all those caught up in it, yet the retaliatory sanctions imposed by the west are also having a major impact on retail investors with money in Russia.
Yields are generally still pretty low right across the board, but there are two investment trusts with recent buy recommendations that are both paying a sustainable income of seven percent.
