This week in MoneyWeek magazine: tackling the world’s chronic lack of water; Mark Carney’s attempts to save the country from recession; and how to hedge against inflation.
Plus, the best share tips from the rest of the UK’s financial press, a look at how to avoid card fraud, and four ways to avoid inheritance tax.
All that and much, much more could be yours if you take out a subscription. You’ll get the magazine delivered direct to your door, full access to moneyweek.com and a subscription to our smartphone and tablet app. Why not try it out now?
Solving the world’s water crisis
Our main feature this week looks at water; or rather, the lack of it. The world may be a very watery place – 71% of the surface is covered with the stuff, after all. But a surprisingly small amount of it is fresh water. And an even smaller amount of that is in the right place.
From India to California and everywhere in between, water and water management is becoming a hot political topic, and there are big profits to be made from making sure everyone has enough. Sarah Moore takes a look at the problem and finds out how investors can contribute to solving the world’s water crisis.
According to the World Bank, says Sarah, “water insecurity can multiply the risk of conflict”. Populations increase and cities expand, while supply dries up and demand rises rapidly, leading those without water to look thirstily upon those who have it.
But there could be light at the end of the tunnel. “When people face a shortage of water, they start to value it properly and act to guarantee its future supply”. Sarah looks at the companies doing this, and picks five of the best stocks to buy now. Find out what they are with try it out now.
Stimulus, inflation and negative interest rates
The cover of the magazine this week (above) features the Bank of England governor, Mark Carney, attempting to pull a rabbit out of a hat. The economy remains drifting listlessly in the doldrums, despite the bank’s “quantitative easing” programme. And with the country voting to leave the EU, many think things could get a lot worse, as confidence flags and companies cut back on investment.
So the bank cut interest rates and expanded its stimulus programme, extending it to include buying corporate bonds as well as sovereign debt. Matthew Partridge looks at what these measures mean – including a return to inflation and the possibility that interest rates could even turn negative.
How to hedge against inflation
If the Bank of England meddling does end in inflation, it could happen surprisingly quickly – so you’d be wise to hedge your portfolio against it while you’ve got the luxury of time. In his investment strategy page this week, Matthew Partridge outlines the assets you should consider buying to do just that. “The received wisdom”, he says, “Is that shares and real estate are good inflation hedges, while bonds… tend to get hit by rising prices”. But is this true? Find out with try it out now.
A contrary view on interest rates
While many people forecast doom and gloom for the economy, made worse by the Brexit vote, Matthew Lynn is much more upbeat about Britain’s prospects. “There is no reason to think the referendum will make a huge difference to the economy”, he says. And “even in the worst-case scenario, only about 5% of the economy will be affected”. The falling pound will boost exports, and with the government abandoning austerity in favour of infrastructure spending, demand will increase.
“By the end of the year”, he says, “the UK will be growing faster than any other economy in Europe”, and Mark Carney’s cut in interest rates will “look like a mistake”. Expect rates to go back up to 0.5% sooner rather than later, he says.
Fraud, death duties and share tips
Elsewhere, Natalie Stanton looks at the worrying rise in card fraud, and explains some sensible steps to take to avoid it; she also explains four ways to cut your liability for the “deeply unpopular” inheritance tax.
And Alex Williams profiles a company taking retail giant Amazon on at its own game, while bringing us his usual roundup of the week’s share tips.
All that and more, plus our usual pages of travel, property, toys and wine, can be yours. try it out now.