Low interest rates likely to be a problem for some time
PwC has released a new report, examining the future direction of interest rates.
It says there is a 75% probability that the 10-year swap rate will be at 4% or below for the next two to five years.
Financial adviser Martin Hawes said that meant some advisers would have to change their investment strategies, particularly for clients who were worried about income.
“We need to move instead to think about total returns. A return which is a capital gain, which you can expect over long periods of time, is not quite as good but is valuable as well. You can access that to buy the groceries by selling units or shares.”
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