Investments abroad yield 'strong returns'

UK investors should transfer their money and 'look abroad' if they want to see strong returns.

The advice comes from JP Morgan's global strategist, Tom Elliot, who has suggested that the emerging markets may provide higher returns than those offered in the current UK economic climate.

Having analysed the changes in global markets across the past decade, Mr Elliot has forecast that "weak DDP growth and low inflation" are likely to pervade in the UK market.

Whilst this has the advantage of continued low interest rates, the advice is to look abroad for profit "to the faster growing economies for capital growth, such as the emerging markets or the US large cap sector".

Mr Elliot added: "If income is a priority, defensive sectors of developed markets that offer high dividend yields which are well covered may be an option".

According to JP Morgan, the negative outlook for UK investment stems from the nationalisation of bank debt.

The nation will take time to recover from this debt which has stretched the budget deficit at a time of low employment levels and increased welfare benefits.

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Posted by Adam Smith