Popular Delusions

Nick O'Connor | 10 July 2020 What safety net? Dear Reader,   One of the main objections I hear to the idea of a post-COVID 19 crash – rather than a correction – is that, as they’ve done with their furlough scheme, the government will simply stop the rot, just as they did in 2008.   But here’s the thing most people don’t seem to want to talk about.   Back in 2008, the Bank of England’s ‘big move’ was to slash interest rates by 90%. This way, they helped debt-ridden companies stay afloat by reducing borrowing costs to almost zero.   As I write this, interest rates are at 0.25%.   The so-called ‘safety net’ is not there anymore. There isn’t any wriggle room left.   At some point, whether it’s through a second-wave or some other reason, there will be a new crisis. You know this. It’s inevitable.   Where does the government and the Bank of England go at that point?   I can’t tell you. A new pension raid… negative interest rates… higher taxes… mansion taxes…   None of them spell ‘good news’ for your money.   Which brings me to Eoin Treacy. Eoin has identified the big move he believes you should be making in preparation for when the worst happens.   Click here to find out.   Best,   Nick O’Connor Publisher, Southbank Investment Research

Important Risk Warning   Before investing you should consider carefully the risks involved, including those described below. If you have any doubt as to suitability or taxation implications, seek independent financial advice.    General – Your capital is at risk when you invest, never risk more than you can afford to lose. Past performance and forecasts are not reliable indicators of future results. Bid/offer spreads, commissions, fees and other charges can reduce returns from investments. There is no guarantee dividends will be paid. Small cap shares - Shares recommended may be small company shares. These can be relatively illiquid meaning they are hard to trade and can have a large bid/offer spread. If you need to sell soon after you bought, you might get back less that you paid. This makes them riskier than other investments.   Taxation - Profits from share dealing are a form of capital gain and subject to taxation. Tax treatment depends on individual circumstances and may be subject to change in the future. The Financial Conduct Authority does not regulate certain activities, including the buying and selling of commodities such as gold. This means that you will not have the protection of the Financial Ombudsman Service or the Financial Services Compensation Scheme. Investment Director: Eoin Treacy. Editors or contributors may have an interest in shares recommended. Information and opinions expressed do not necessarily reflect the views of other editors/contributors of Southbank Investment Research Limited. Full details of our complaints procedure and terms and conditions can be found at, www.southbankresearch.com.   Gold Stock Fortunes is issued by Southbank Investment Research Limited. Exponential Investor is published by Southbank Investment Research Limited. Southbank Investment Research Limited is authorised and regulated by the Financial Conduct Authority. FCA No 706697. https://register.fca.org.uk/. Customer Service Please do not reply to this email. This email inbox is not monitored. To contact customer services, please click here. Alternatively, telephone us on 0203 966 4580, Monday to Friday, 9.00am - 5.30pm. Email Reference: EXIDE03 To unsubscribe from Exponential Investor please click here © 2020 Southbank Investment Research Ltd. Registered in England and Wales No 9539630. VAT No GB629 7287 94. Registered Office: 2nd Floor, Crowne House, 56-58 Southwark Street, London, SE1 1UN.