The Financial Outlook for Personal Investors: Rising gilt yields & what they mean for equities

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Simon Rose

The Financial Outlook for Personal Investors: Rising gilt yields & what they mean for equities

Simon Rose
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The Financial Outlook for Personal Investors

The Financial Outlook for Personal Investors: Rising gilt yields & what they mean for equities
Russ Mould of A J Bell discusses the UK 10-year gilt yield rising over 4%, despite the Bank of England governor saying that interest rate cuts could happen more quickly. Why are equity markets both here and in the US more optimistic than fixed interest investors? In the UK we owe £2.5 trillion and have a £100 billion interest bill, so the government faces very difficult decisions. The only way to reduce the burgeoning debt/GDP ratio is through growth or inflation. It will probably be a combination of both and 2% may soon be the floor for the inflation rate rather than the ceiling. Russ discusses what this may mean for equities, with 28 of the FTSE100 companies yielding more than the 10-year gilt.
Guest:

Russ Mould


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