Worldwide Financial Planning

Quantitative easing and central bank’s interference in investments has left the investor with a small choice for where to look for a difference between the current price of an investment and a higher future price – where you will make money.

As has become tradition, after the conclusion of the latest round of talks between the UK and EU negotiators, David Davis has made claims of huge progress while Michel Barnier rolled his eyes and made a rude gesture behind his back - figuratively speaking.

Central banks have come under criticism for supporting the housing market and equities with their interference with Quantitative Easing (QE), so it seems very strange to me that the selling of assets aren’t expected to create a downward pressure on the same assets they have inflated upwards – what goes up must come down.

This week we had the spectacle of Theresa May being given a P45 while the set fell apart around her during her Conservative Party conference speech.

QE is normally introduced after interest rate stimuli fails. For example, the Bank of England lowers rates which lowers your, and companies’ mortgages and loans and might encourage you to borrow to spend.

Furthermore, with poor interest rates you believe you are better doing something with your cash, so you buy ‘stuff’ or stock market equities, or a house to achieve a better yield.

While a proposal to introduce rent controls was widely criticised, other measurers such as a land tax have long been pushed by policy experts to boost house building.

Another call to tax big business and spend more on public services will likely go down well with the country at large as well.