What next?

With property, shares and bond prices looking less attractive – many are wondering what to do with their money…

by Simon Popple of the Brookville Capital Intelligence Report

With property, shares and bond prices looking less attractive – many are wondering what to do with their money.

Let’s first take a look at some major UK indices to see whether they offer any clues.

Firstly, here is the FTSE 100. Although it’s come off its high’s – given we’re in the midst of a pandemic. I’d expect that.

Secondly, here is the nationwide chart for UK house prices over the past 10 years. I like property a lot – but this does not look like a great entry point to me.

Finally, here is a chart showing the historic prices in some UK gilts.

Whilst I think all of these asset classes are important. If you’re looking to allocate new capital, I’d be tempted to look elsewhere.

There’s already been a big clamouring for gold and silver and although I still like these markets…..I think some diversification makes sense.

Here is a chart for the Van Eck Gold Index…..I think it could still go higher….but it’s probably not the diversification you’re looking for.

But what?

Take a look at the chart below. It’s the Goldman Sachs commodity index.

I like commodities. Because you can’t print them.

To me they cover two bases. If there’s an economic recovery (let’s hope there is!), then commodities should be in high demand – which should be good for the price.

Should that not happen, more and more money is likely to be printed. If that happens I think people will be looking for tangible assets. Which you’d hope would be good for commodity prices.

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Simon Popple is the Author of the Brookville Capital Intelligence Report – further information about this weekly report can be found at www.brookvillecapital.com