The challenges facing investors and investment professionals ... Personal investment is a goldmine for some but a minefield for most. The decade ahead is going to pose tough challenges for both personal investors and the investment professionals who serve them. There will always be some shares that deliver spectacular returns to their shareholders, just as there are always winners of the Grand National, but picking them can be very difficult. – Roger Bootle, UK Telegraph
Dominant Social Theme: It's a tough time in the markets but this too shall pass. Just don't do anything rash.
Free-Market Analysis: Fund manager Roger Bootle is back in the Telegraph with another article on investing (actually it appeared a few days ago) that predicts rather gloomily the upcoming difficulty in making decent returns in the ongoing low-inflation climate.
He explains that most investors are unrealistic because for the past 40 years, until fairly recently, "high" price inflation was normal and this allowed investors to achieve gains that at least looked good on paper even if at the end of the day, price inflation and taxes meant there was really very little profit at all. We'll note here by the way that Bootle does not (as most in the mainstream press do not), differentiate between price inflation and "real" monetary inflation, which is based on the quantity of money circulating in the larger markets. We do, though.