Yes, it's Eurovision Song Contest weekend. Love it or hate it (and I swing each way several times during the evening) it is, as per it's own hype, a televisual feast!
This year's UK entry, Josh Dubovie is singing a Pete Waterman song, 'That sounds good to me', which must surely win the prize - "Most Inappropriately Titled UK Entry of All Time". On this evidence, Mr Waterman is well past his best. I thinks he needs help from his old friends, Mr Stock and Mr Aiken. As I write, the bookmakers have Josh at 200-1 - so that's another prize - "Longest Ever Odds Against a UK Eurovision Entry"
At times like this I'm glad that I'm Irish - Niamh Kavanagh's (she won in 1993) entry (It's for you) is at least well-written and melodic.
Win, lose or draw (and who really cares), it promises to be an entertaining evening and the debate in the Laird houselhold will be what makes it such fun. It's just a pity Sir Terry has retired - Graham Norton is good but it's a hard act to follow.
Whatever you do this weekend - have a good one!
Friday, 28 May 2010
Tuesday, 18 May 2010
Inflation rears its ugly head again. Be Prepared!
The latest UK inflation figure has just been announced - it's 3.7%. This is way in excess of the Bank of England target of 2.5%. I'm only aware of one UK deposit account which will give a return in excess of this inflation figure after basic rate tax and it's offered by Coventry Building Society. They will pay you 5% gross (4% after basic rate tax) but you have to tie your money up for 5 years (any money you take out in the meantime will have a penalty of six months' loss of interest applied to it).
So why is inflation so high when we are still in recession? (the technical definition of a recession may well suggest that we aren't still in one but I don't think that any of us is fooled by that)
Well, the weakness of the pound against virtually every currency other than the euro hasn't helped - making imports considerably more expensive recently. For example, my wine club has just increased its prices generally by @ £1-£1.50 per bottle (15-20%) to allow for the drop in the value of sterling. This situation is unlikely to change soon as the Bank of England is likely to keep interest rates low (at a time when they would normally be putting them up to fight inflation) because the economy is so weak. This makes it unatractive for other countries to buy sterling as they'll get a very low rate of interest on sterling deposits, which in turn puts pressure on the pound.
I have never seen, in 17 years of experience, so many 'Catch 22' situations all at the same time! Sadly, as more people are beginning to understand, the only way in which many countries will be able to afford their debt is for it to be 'inflated away', suggesting that inflation will continue to rise in the medium term. This is, as we've seen above, really bad news for savers. The answer is to divide your funds up into chunks - money that you may need immediately or in the very short term (and therefore can't afford to take any risk with), more medium term money (low risk)and then the long term stuff. You can afford more risk with the long term stuff (and therefore protect it better from inflation) if you know you won't need to touch it and can therefore ride out any short-term market volatility.
Review your investments and do it regularly!
So why is inflation so high when we are still in recession? (the technical definition of a recession may well suggest that we aren't still in one but I don't think that any of us is fooled by that)
Well, the weakness of the pound against virtually every currency other than the euro hasn't helped - making imports considerably more expensive recently. For example, my wine club has just increased its prices generally by @ £1-£1.50 per bottle (15-20%) to allow for the drop in the value of sterling. This situation is unlikely to change soon as the Bank of England is likely to keep interest rates low (at a time when they would normally be putting them up to fight inflation) because the economy is so weak. This makes it unatractive for other countries to buy sterling as they'll get a very low rate of interest on sterling deposits, which in turn puts pressure on the pound.
I have never seen, in 17 years of experience, so many 'Catch 22' situations all at the same time! Sadly, as more people are beginning to understand, the only way in which many countries will be able to afford their debt is for it to be 'inflated away', suggesting that inflation will continue to rise in the medium term. This is, as we've seen above, really bad news for savers. The answer is to divide your funds up into chunks - money that you may need immediately or in the very short term (and therefore can't afford to take any risk with), more medium term money (low risk)and then the long term stuff. You can afford more risk with the long term stuff (and therefore protect it better from inflation) if you know you won't need to touch it and can therefore ride out any short-term market volatility.
Review your investments and do it regularly!
Friday, 14 May 2010
Hope springs eternal!
The early signs of the new UK government are encouraging.
The need for consensus has resulted in some of the more controversial manifesto promises of each party being abandoned. Inheritance Tax planning, for example, is now definitely back in fashion!
The good news, so far at least, is that the two parties seem determined to make it work. Time will tell. At least the drastic cuts need to balance the UK's books within a reasonable period of time will be (slightly) more palatable when backed by two parties instead of one.
Tax will rise and so, ultimately, will inflation so now is a really good time to review your investments and get them in shape for this Brave New World we're living in.
The need for consensus has resulted in some of the more controversial manifesto promises of each party being abandoned. Inheritance Tax planning, for example, is now definitely back in fashion!
The good news, so far at least, is that the two parties seem determined to make it work. Time will tell. At least the drastic cuts need to balance the UK's books within a reasonable period of time will be (slightly) more palatable when backed by two parties instead of one.
Tax will rise and so, ultimately, will inflation so now is a really good time to review your investments and get them in shape for this Brave New World we're living in.
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