Well, here’s something to put a smile on Rishi and Jeremy’s collective faces: inflation has fallen. Actually, since last year, quite a bit, from 11% or more to 3% or more. Apparently, most is down to food prices, but, whatever, it’s the effect on interest rates which is likely to be key. They won’t go up any more and should, all being equal etc., start to come down, probably pre-election; and falling interest rates can usually push up both shares and bonds (loans to government and companies), which in most ‘balanced’ portfolios, are used to balance one another. In the US, which has the biggest effect on your investments, inflation has been 3%-ish for a while, and their economy continues to do pretty darn well, whatever DT would like you/them to think. He’s a known unknown, of course, but I’d still say all looks good, glass half-full and positive (investment) mental attitude.
“Reaction: UK economy returns to growth as GDP rises by 0.3%”
OK, this sounds like good news, doesn’t I? Last month’s figures showed a fall in GDP, and three of those in a row equals ‘technical recession’.
