The Financial Outlook for Personal Investors: Should we believe gilts or equities?

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Simon Rose

The Financial Outlook for Personal Investors: Should we believe gilts or equities?

Simon Rose
Original Broadcast:

The Financial Outlook for Personal Investors

The Financial Outlook for Personal Investors: Should we believe gilts or equities?
Russ Mould of A J Bell points out that supposedly risk-free 10-year gilts and corresponding instruments have risen despite interest rate cuts from central banks. At the same time, equities have been generally strong. In the US, the 10-year Treasury is now equal to the earnings yield on the S&P 500. Investors might be taking the extra risk anticipating upside potential but it could be seen as an early warning sign. In the UK, the earnings yield is double the 10-year gilt yield, making the domestic market look cheap, explaining all the takeover activity.
Guest:

Russ Mould


Published:


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