Shojin chief says diversification is key while rates and inflation remain unpredictable
Shojin chief Jatin Ondhia has said that diversification is key for investors as interest rates and inflation endure more unpredictability.
“For investors…it is crucial they assess how well positioned their portfolios are to deliver returns amid stickier-than-expected inflation,” said the boss of the peer-to-peer property lending platform.
“Diversification will likely remain a watchword for investors.
“Predicting quite where interest rates and inflation will go in the months to come is difficult, so many people will opt to diversify their investments so they are not tied too closely to any particularly market forecasts.”
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Ondhia’s comments come after official data today showed that annual inflation fell to 6.8 per cent in July, down from 7.9 per cent in June and well below the peak of 11.1 per cent in October. However, this is still far above the Bank of England’s two per cent target.
Other industry commentators noted that inflation is still uncomfortably high.
“Inflation continues to moderate and head in the right direction which is a welcome sign for those who have struggled to maintain financial buoyancy because of high costs,” said Myron Jobson, senior personal finance analyst at interactive investor. “But it remains far too high for comfort.”
Food inflation is slowing with the lates statistics showing it went down to 14.9 per cent from 17.4 per cent last month.
“The decisive action we’ve taken to tackle inflation is working, and the rate now stands at its lowest level since February last year,” said Chancellor Jeremy Hunt. “But while price rises are slowing, we’re not at the finish line. We must stick to our plan to halve inflation this year and get it back to the two per cent target as soon as possible.”
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For small businesses, the rate is still worrisome.
“While a drop in inflation provides some comfort, today’s figures show less of a drop in inflation than hoped for, and will renew fears of a wage-price spiral, and of yet more base rate hikes in future,” said Martin McTague, national chair of the Federation of Small Businesses.
“The worry now is that rising wages ignite a fresh wave of inflation in September, which will threaten the momentum from June’s GDP growth.
“The cost of doing business crisis still has a grip on the small business community, as prices for many key inputs, from energy to components and raw materials, remain far above where they were a year ago.
“Any reduction in inflation is good news, but the huge toll that spiralling prices have inflicted is still being keenly felt by small firms.”
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