Despite the FTSE 100 recently finishing at its highest level since the turn of the century, it still remains a difficult time for investors when deciding what might happen next. Will it be closer to 6,000 points in 12 months time, or perhaps 7,000?
We take a look at what has been one of the most unusual market runs in history in order to better understand what might happen in the coming years as well as consider a selection of growth investments that could match your view.
A very strange bull market
When there is a strong and relatively continuous rise in the stock market it is usually referred to as a bull market. For the 12 months to the end of May, the most widely used indicator of the UK stock market, the FTSE 100 Index, had risen by a sizeable 1,262 points, equivalent to 23.7% growth.
There are many challenges facing people who have historically relied on interest from their savings. This is particularly true for people in retirement on fixed incomes, where cost of living increases are making it increasingly difficult for many people to maintain their living standards.
The effect of price increases
The impact of increasing prices can be seen when looking back over the last 10 years. A good way to think of price inflation is to think of a shopping basket containing goods and services which people in the UK typically spend their money on. As the price of items in the basket change over time, so does the total cost of the basket.
If you run a business, you could benefit from placing any money that’s not being used in a specialist business savings account.
Cash that is not currently required as capital will usually generate more interest in a business savings account than in a business current account.
See below for a selection of business savings accounts that could be worth considering this month.*
Fixed rate bonds can potentially offer a better return than easy access savings accounts, in return for tying up your capital for a set period.
To help you choose the right savings option for you, see below for our selection of some of the current fixed rate bond deals for June 2013.
We also showcase some alternative ideas for those savers who are happy to tie up capital for three years or more.