Don't bet the farm on shares

With interest rates at record lows, investors may be tempted to pour all their money into stocks. But don’t abandon bonds completely, says Phil Oakley. Here’s why.

On Monday, I suggested buying index linked gilts as a way of protecting your money from inflation. A number of readers responded that they are too pricey, the RPI to which they are linked is a dodgy measure of inflation, and that buying shares is a much better way to go.

I can understand why people think this, particularly when they see the low returns on offer elsewhere, and when they see high profile names making this case. Just this week, the chief executive of Aberdeen Asset Management said savers should abandon cash and pile into shares as he views the latter as a safer place to be.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.