You are here: Home - Saving & Banking - News -

Market conditions reveal some advantages

Written by:

Despite the collapse of Bear Stearns this week, some positive factors have come to light in the current market conditions, according to Alex Lyle, head of managed funds at Threadneedle.

Although the Bear Stearns situation is likely to have caused a negative effect on confidence, Lyle said the Federal Reserve’s strategy to boost liquidity and reduce interest rates by a further 0.75%, was swift and aggressive.

He said: “Recent figures on inflation from the U.S. have shown signs of improvement and the oil price has fallen from its peak. This reduces a constraint on the central bank’s ability to cut rates. Finally, and crucially, equity valuations are attractive.”

According to Lyle, equities currently offer value for medium term investors, in particular higher risk bonds, including investment grade, high yield and emerging market bonds.

He added: “These are all offering increasingly attractive spreads over government bonds. We believe the likely risks are fully discounted and these asset classes will show attractive returns over the medium term.”

Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
FSA to investigate financial shares trading

UK financial watchdog the Financial Services Authority (FSA) has launched an investigation into trading in UK financial shares this week.