Through the mists that swirl round his mountain eerie, Auld Reekie made his end-of-year financial predictions to assembled anorack-clad, thermos-clutching, shivering fund managers. This year his words were dim and quavering... "How can the worst financial crisis in 80 years be over in six months?" he asked. "How can the Bank of England print £200 billion pounds of monopoly money without inflation? And what will happen when they stop doing it?"
The fund managers waited for the answer, but Auld Reekie just shook his head and tottered back into his cave.
Moneybox Man remembered Cummings' cartoon of 1979, and noted that The Conservative Government then had to tackle a deficit of some £9 billion, whereas the deficit in the spring of 2010 will be almost £70 billion.
Savage public spending cuts... a collapsing housing market when interest rates rise... no wonder Auld Reekie tottered.
All the more important, says Moneybox Man, to assemble a list of sound, cautious, well-managed Investment Trusts, that can be bought when the time is right!
We will next look at cash, fixed-interest, corporate bonds and the like. (Not that Moneybox Man actually likes any of them at the moment).
No comments:
Post a Comment