If you click here, you can access John Mauldin's article 'The Endgame Headwinds' - in my opinion, it is an excellent expose both of the way forward out of the economic mess in which so many countries find themselves and also of the principles which underlie LCFR's Investment Template.
Key messages are:
- Economic recovery is going to be painful and lengthy. It could take four years and probably more here in the UK. Even financial journalists are now beginning to realise this. For example, yesterday's Times Business section contained an article 'Cuts cast a long shadow'.
- Early stage companies will spur recovery. In particular, companies which develop productivity enhancing products and/or services (music to my ears!).
The shame in this country is that we are not yet seeing joined up thinking at Westminster reflecting the above. Examples of changes which would help and cost very little to implement are:
- Allow all AIM companies to be held within ISAs. It seems to me potty that Westmister should effectively be able to give investment advice by permitting only a very small number of AIM listed companies to be held within ISAs while at the same time increasing EIS relief!
- Make gains on shares held for more than eight years free of Capital Gains Tax.
