This week in MoneyWeek, we look the best investment in Latin America, pick the best ways to profit from continued growth in the US, and explain how to secure income in a world of low yields.
Not only that, there are five straightforward ways to minimise your exposure to inheritance tax, and Matthew Lynn makes the case for immigration.
Add in news and views from around the markets, all the best share tips from the UK press, and five pages of how to spend it, delivered direct to you, you’d be mad not to sign up now.
Smart investors should buy in to Colombia now
South America is an intriguing place. Blessed with abundant natural resources, it has the potential to be hugely rich. Unfortunately, it has also been cursed with corruption, lawlessness and economic mismanagement.
Take Colombia. For years, it’s been subjected to two enormously destructive influences – the Revolutionary Armed Forces of Colombia (Farc) guerrilla group on the one hand, and trigger-happy drug cartels on the other. But, as James McKeigue says in this week’s cover story, that’s all changing.
The government as signed a peace deal with Farc, and the power of the drug barons is waning. But that’s not the only reason investors should be looking at Colombia. The Colombian peso has lost over 40% against the dollar, which has hit oil and commodity exports, but it’s “boosting growth in other areas such as manufacturing (growing at 6% a year), tourism and financial services”. It also makes it “a great time to buy Colombia on the cheap”, says James.
Add in a surprisingly diverse domestic economy, a demographic boom and a decade-long, $50bn infrastructure building programme, there’s plenty to be enthusiastic about. James picks the three best ways to buy in. Find out what they are with sign up now.
US stocks aren’t done yet
US equities have been booming for some time. And “any investor without a chunky exposure” has missed out, says Max King. Many people think they’ve been booming for a bit too long, perhaps, and that now US stocks are looking decidedly expensive. But not Max. There will always be “Jeremiahs arguing that US outperformance has gone too far”, he says, but “the long-term trend looks unlikely to change”.
There are plenty of US-only funds, but nearly all the actively managed ones “struggle to consistently beat the indices”. A good alternative, says Max, is to “combine some global equity funds with US-heavy sector specialists, such as those devoted to technology and healthcare, and a low-cost S&P 500 index-tracker of exchange-traded fund”.
He picks two investment trusts that he thinks you should be buying now and tucking away for the long term.
Finding income in a low-yield world
Pension funds are caught in a trap. With government bond yields at all-time lows, an increasing number of them are technically unable to meet their liabilities. By the end of August, the combined deficit of schemes run by FTSE 100 companies hit £189bn, says David Prosser.
And it’s not only defined-benefits pension schemes run by big companies that are in trouble. The likelihood is that your pension is too. “The lower yields go, the larger the fund you’ll need to get the retirement income you want”, says David Prosser. Find out how to do that by sign up now.
Ducking death taxes, the case for immigration, and UK real estate
David crops up again on the personal finance page discussing inheritance tax, and outlines fives straightforward options to consider to minimise your liability. Matthew Lynn argues in his City View column that we really do need those immigrants from the EU if we want a successful economy, and David C Stevenson explains why he’d still buy UK real estate.
In the back, Chris Carter picks three unusual boutique hotels to stay in, Matthew Jukes’ wine of the week is a new vintage champagne that’s a “joy” to drink, and we’ve a roundup of some of the best crowdfunded gadgets about to hit the market.
Plus, lots, lots, more. sign up now.