The Financial Outlook for Personal Investors: What UK political turmoil means for markets

Russ Mould of A J Bell says that the UK 10-year gilt, yielding over 5%, is the highest since 2008. Although that was normal in the Blair years, things are different after 15 years of financial repression with inflation consistently above target and debt levels everywhere far higher. If Starmer and Reeves are replaced, we'd have the 7th PM and 9th Chancellor in 10 years. In the G20 only emerging markets have to pay more to borrow than the UK, while our interest bill is more than we spend on defence. Investors can get a theoretically risk-free and tax-free 5% nominal yield with gilts. It's a potential alternative to equities but inflation is the enemy: while the UK market yields 3.6%, with buybacks, bids and so on factored in, it's more like 6.3%. Learn more about your ad choices. Visit podcastchoices.com/adchoices