The attractions of UK equities
Article Abstract:
United Kingdom equities are cheap in relation to government securities (gilts), according to Lehman Brothers' Ian Scott. Equities could be seen as more risky and this could account for their high earnings yield. The risk premium may have increased as a result of increased volatility of stock markets world wide. Earnings could also fall, which would affect the earnings yield. Scott sees earnings as unlikely to rise by as much as some forecasts, but he still sees stock prices as likely to rise. Charterhouse Tilney's Richard Jeffrey fears that inflation and gilts yields could rise in 1998 and stock prices could fall.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Satisfaction not guaranteed
Article Abstract:
Guaranteed stock market investments have disadvantages which are not immediately apparent. They offer a guarantee that investors will not lose their capital after five years, but this is easily achieved with investments in blue chip shares on the UK stock market. They do not allow investors to benefit from share dividends and they are inflexible so investors cannot sell when prices are high. Investors will fund their capital has been eroded by inflation if they only receive their money back, and could obtain a better return from a building society if they only obtain a small sum in addition to their capital.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Preparing for the coming battle
Article Abstract:
UK interest rates are likely to rise in 1997, which could depress share prices, but corporate earnings are likely to grow, which will tend to boost shares. The net impact on shares of these contradictory forces is not easy to assess. Share prices usually tend to rise when interest rates rise only when shares were initially undervalued and when bond yields are dropping. UK shares do not appear undervalued, not do bond yields appear likely to drop. UK corporate taxes may also rise if there is a change in government, and this would affect earnings.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: This sporting life. Prepare for change. Constructive concern
- Abstracts: Unharmonious harmonization. Searching for the right stuff. Rough justice?
- Abstracts: The effect of large audit firm mergers on audit pricing in the UK. Measuring large UK accounting firm profit margins, mergers and concentration: a political economy of the accounting firm
- Abstracts: Takeovers taken to the limit. Campaign for hearts and minds
- Abstracts: The art market: Pable Picasso. Art and antiques: more for love than money. The art market: LS Lowry