The Quest For Above-Inflation Returns
With inflation approaching double digits and the Bank of England forecasting considerably higher rates in the coming months, it’s no surprise that investors are concerned.
For over 40 years, a return on capital of 10–15% per year was considered reasonable. As things now stand, this may be considered treading water.
That is one of the reasons why alternative assets like property, commodities, and private equity are becoming increasingly popular… the temptation of larger returns while giving some kind of inflation protection.
In order to fight inflation, over half of UK investors have or plan to make alternative investments this year.
It will be fascinating to observe how capital adjusts to the new reality in the quest for greater returns in the domestic housing market and UK small and medium-sized businesses.
