High society
Article Abstract:
Investors seek cash flow without undermining their capital, and this cashflow can be achieved through realizing gains or through buying assets that provide revenue flows. Capital gains tax (CGT) allowances can be used to reduce the tax bill, as well as CGT relief and tax-free products such as Peps. Risk diversification and balance are key issues, and investors need to find the right mix of exposure to equities and to more stable products giving fixed interest. These issues are more important than distinctions between capital growth and income.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
The US market
Article Abstract:
There have been fears of a possible collapse in US stock prices since 1987, and many investors missed out on US stock price rises by focusing on mainland Europe or Japan. The US benefited from lower defense spending after the Cold War ended, and this allowed budget deficits to be reduced and interest rates to drop, while new markets opened. Increased capacity has also helped to keep inflation low. The US offers a very large market with an informed domestic savings base. Some sectors may be overvalued, but others may be cheap.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Spot the difference
Article Abstract:
Guaranteed income bonds guarantee that capital will be returned when a set period has elapsed, which may be between one year and six years. There are also bonds which provide a guaranteed income but which do not guarantee that capital will be returned. Index linked bonds appear to present little risk, judging by past performance, but a risk exists. Interest rates may rise, and investors may not be able to give up a holding without penalties, so may be hampered when seeking to take advantage of higher rates.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Growth through symbiosis. Discovering the middle market
- Abstracts: Studying the market. Acquiring minds
- Abstracts: E-banking , FEDI and e-commerce. The new imperative for corporate treasurers. Euro - Greater than the sum of its parts
- Abstracts: Singapore's domestic debt market. Pan-Asian and global liquidity solutions
- Abstracts: Securitisation of Japanese consumer loans. The future shape of global banking