Posted tagged ‘tax year’

Invest Now – But what are the Options?

March 26, 2009

So, the tax year is drawing to a close, and many of us might be wondering what to do with the £7,200 ISA allowance.

Now, before we baulk at the idea of entering the market in the current climate, how about going through some of the options…

Ok, so number 1 – invest in the USA, isn’t that the obvious choice?  After all, they are widely predicted to be the first to recover.  But, for UK investors, the dollar to pound exchange rate and vice versa may not bring in the returns, especially if the dollar depreciates against the pound.

Right, so how about sticking with UK equity income funds?  There are some really nice offers available on these, with most around 6 per cent annual income.  Definitely worth a thought.

What about our emerging market cousins?  Russia for example has some quite cheap stocks, and they should see a recovery as soon as the USA begins to pick up again.

There are other more risky options such as Japan, but these are not for the faint-hearted.  One thing is for sure – the time to act is now, as time is running out!!