With property, shares and bond prices looking less attractive – many are wondering what to do with their money…
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.
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.
Simon Popple is the Author of the Brookville Capital Intelligence Report – further information about this weekly report can be found at www.brookvillecapital.com