One of the increasingly obvious side effects of the great global QE experiment is it is messing up our pensions, and throwing a spanner into every financial adviser's planning process.
Given the current regulatory and monetary framework, QE is helping to produce monumental pension shortfalls with increasingly undesirable financial side effects, not least an imminent boom in pensions-funded buy to let investments. If we want to untangle the increasingly complex Gordian knot of unintended policy consequences, we have to start with some startling gilts basics. Only a few weeks back, the UK Debt Management Office (the DMO) managed to auction off £4.6bn of index-linked 2058 maturity bonds despite a negative real yield of 0.9%. Shockingly low yields mirror the fact that m...
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