The headline-grabbing news this week, of course, was George Osborne’s eighth Budget which he delivered just before MoneyWeek magazine went to press. It “didn’t tell us much about the “big picture for the UK” over the next few years, says Merryn Somerset Webb, but Osborne “did send the UK’s investors some very clear messages” – he doesn’t like buy to let, he wants more entrepreneurs, and he’s not finished fiddling with pensions.
We touch on the main points of the Budget in this week’s issue. But we’re going to take a little time to really get our teeth into it. We’ll bring your our in-depth analysis on what it means for you in next week’s edition. Why not sign up now so you don’t miss a thing?
What would you do with a “blizzard of free cash?”
Our cover story this week is on central banks and the desperate measures they’re taking to stimulate the world’s moribund economies. George Osborne might have talked about austerity in his Budget, but he might not have to worry about doing that for much longer, says Rupert Foster. In the future, Osborne “may well be able to draw directly on the central bank to print money” that he then “literally hands out to the population through tax rebates or grants”.
It’s all down to the idea of “helicopter money” – a phrase coined by economist Milton Friedman, who “jokily imagined helicopters flying over America, with the occupants throwing $1,000 bills to the grateful masses”. It might sound far-fetched – but the powers that be are now beginning to think the unthinkable. Rupert looks at what the consequences would be if they were to go through with it, and how to invest before the helicopters take off.
If printing money doesn’t work, what will?
Russell Napier is one of our favourite economists (though he doesn’t like the term). Merryn interviewed him back in November 2014, when he said that even though monetary policy wasn’t working, that would just encourage central banks to do more of it. That’s exactly what happened, of course.
Russell returns this week to talk about the effect negative rates are having, and what comes next in government’s quest to drive up inflation. Actually, says Russell, creating inflation is easy. “I think we could do it tomorrow morning”, he says, but it would have to come from governments, not central banks.
To find out how Russell thinks it could work, and how to invest in such difficult and complicated times, Why not sign up now so you don’t miss a thing.
How safe are your shares?
A common question from investors is “what happens to my shares if the firm I bought them through goes bust?” The Financial Services Compensation Scheme protects your bank deposits up to £75,000 per person per bank. But what protection do you have if your broker goes under?
In theory, “the collapse of a broker should result in nothing worse than some disruption while your assets are returned to you”, says Cris Sholto Heaton. But the full answer is surprisingly complicated. So this week, Cris walks you through which of your investments are protected and which ones aren’t.
Speaking of shares, Alex Williams looks at one of Britain’s most iconic companies and asks if it can turn itself around. And if you fancy a punt on a risky stock or two, Alex picks a couple he thinks could do well. Plus, we have a roundup of share tips from the rest of the financial press.
Are holiday lets worth the bother?
With George Osborne making life increasingly difficult for the country’s buy to letters, a lot of people are hunting around for other options, says Sarah Moore. And what a lot of them have decided on is holiday lets.
On the face of it, it could make sense. There are “several tax benefits associated with what is technically classified as a furnished holiday let”, she says, but they are “not to be taken on lightly”. It’s a big commitment, and there’s an awful lot to think about. Just getting a mortgage can be difficult. Sarah points out the pitfalls and things to be aware of, and picks some of the best mortgage deals on offer at the moment.
Pensions, energy and trend following funds
Elsewhere in the magazine, Natalie Stanton looks at what to do if you ever find yourself in the unfortunate position that BHS employees find themselves in. Their company is going bust, and 13,000 staff under retirement age look set to “see their pension trimmed by 10%”.
Giselle Garcia looks at the energy market, and asks if it’s time to switch your supplier. And Mischa Frankl Duval looks at “trend following” hedge funds, which have been doing remarkably well lately.
Chris Carter picks four of the best holidays for health nuts, we look at the best Grade 1 listed properties for sale, and award-winning wine writer Matthew Jukes picks a “heavenly” sherry with a “staggering” price tag – the most expensive he’s ever picked.
If that sounds appealing, Why not sign up now so you don’t miss a thing? It could easily pay for itself.