The relationship between economic growth, inflation expectations and government bond yields is likely to be a dominant investment theme throughout 2018. Already this year financial markets have been spooked by the prospect of higher inflation and higher bond yields. The important question now is how far and how fast will yields rise from here?
Passing on wealth has never cost the UK so much. Inheritance tax (IHT) receipts are surging and reached a record £4.9 billion last year. With property prices rising and IHT allowances frozen until 2021, that trend is likely to continue.
The threat of higher inflation and rising interest rates spooked global stock markets in February and pushed up government bond yields. We expect the trend of rising yields to persist and be a dominant investment theme over the coming year, with implications for equities.
After almost 18 months without a setback, investors forgot what volatility felt like. That complacency has now been shattered, but sound underlying business conditions remain intact. That’s no bad thing.
Original, diverse and international – this year’s shortlist encapsulates what the Rathbones Folio Prize is all about.
In a post-Brexit world, Britain may have to become less reliant on its financial services sector and the South East.
Access the first few chapters of all of the Rathbones Folio Prize shortlisted books digitally for free. Read just for yourself or chat online with others about this great selection of books not to be missed.
Those who remember the rampant inflation of the 1970s and 1980s may be over-concerned about its return and the insidious effect it has on our wealth. But history offers some comfort too.