The market this week found support around 5200 after falling at the start of the week. We are looking beyond COVID 19 and focusing on the economy and how the government will fund the stimulus package. What is clear is that interest rate will stay low for years while inflation is expected to be high.
For retired clients and those retiring soon,high inflation and low interest rates will erode away your capital held in fixed interest investments. With a number of companies raising capital right now, you need to consider the nature of the investment and any inflation risk it carries.
