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(Bloomberg) — There’s not much you can do right now to dramatically improve your personal finances. But there’s at least one thing you can get on top of: cash savings accounts. You can now get 3 or 4% a year on your money if you look around. Take the easy win and move, says Simon Edelsten, manager of the Artemis Global Select fund, on this week’s episode of Merryn Talks Money.
This shift is symptomatic of the change in all markets, he explains. Rising rates are good for cash savers (although 4% doesn’t totally cut it when inflation is 10%), but they’re horrible for other sectors of the financial world. There are many unexploded bombs out there, he says, noting you may want to keep your eyes on the private equity sector.
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How do you keep yourself safe (or as safe as is possible in our new world)? Global equity valuations aren’t cheap, says Edelsten, but look at free cash flows and book values in particular—it’s possible to “get a lot of company for your money,” particularly in the banking sector. China coming out of lockdown also provides excellent opportunities—not necessarily in the Chinese stock market itself but in the shares of companies making things Chinese consumers like to buy (think handbags and make up). The same goes for the energy transition: it can’t be done without copper, gas and massive upgrades to the global electricity grid—so it makes sense to own companies in those areas, too.
To contact the authors of this story:
Sommer Saadi in London at [email protected]
Merryn Somerset Webb in London at [email protected]
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