Government bonds or shares are all rubbish. What to invest in?

The answer is not easy. Bill Gross, the founder of Pimco and “king of government bonds”, predicts that the yield on US 10-year bonds will rise to 2% next year. This would mean the 3% loss for investors at the current inflation rate. The dynamics of demand and supply also point to the further fall in the prices of US government bonds (rise in yield). Today, the FED is buying 60% of all US bonds as part of its quantitative easing, but will soon have no choice but to reduce the scale of US bond purchases in the face of inflation. At the same time, China, Russia are massively dumping these debt securities. So should one invest in equities? Now, when their prices are shooting through the roof? After all, shares can turn out to be rubbish if companies’ profits don’t want to rise as they have in recent years. With today’s inflation, it’s not worth holding cash either. The situation is becoming dramatic.

If you want to learn more, if you are looking for tips for your investments, please read recommendations and warnings for investors in our bulletins.

UK: Millions on pre-paid energy meters could face cut-off as prices soar

The chaos in gas and electricity markets is set to hit one group of people the hardest this winter: the four million households that use prepayment meters (PPMs).

While most people pay their bills monthly for energy they have already used, PPMs require people to pay for energy before they use it. PPMs take whatever money is in the meter and supply energy to the household.  Source Open Democracy

European gas prices surge as Gazprom hits supply hopes

Russia’s Gazprom has damped hopes for additional gas exports to Europe next month as the continent struggles with record prices, despite recent hints from President Vladimir Putin that more could be forthcoming.

UK and European gas prices surged as much as 18 per cent on Monday after a keenly awaited pipeline capacity auction showed no increase from Russia either through the Ukrainian pipeline system or lines passing via Poland to north-west Europe. Source FT