This week we seem to be seeing a change direction for the government. Teresa May, was by any standards impressive when she made her speech to the party conference. She did, however, praise the record of the Cameron government and still seems a little out of touch. The pound crashed this week down to 1.2454 this morning. She hasn’t got a vote of confidence from the market.
Differing investments have different risks. The higher the risk the bigger the return investors expect. A savings account at a bank in the UK is protected by a government guarantee up to £85,000 and so there is little risk. The returns though are often less than inflation, which is a negative return in real terms. (more…)