Defensive strategy helps cautious investors

23rd September 2010

Decisions continue to be increasingly difficult for investors, with ongoing uncertainty over the global economy at the root of the problem. Now problems closer to home are adding to the uncertainty.

The outlook for inflation is another headache with the retail price index (RPI) currently standing at 4.7%. 

Chris Burvill, manager of Gartmore Cautious Managed Fund, does not regard this as high enough to warrant radical action. However he warns that if it’s current rate of rise could take the erosion of purchasing power into dangerous territory.

Purchasing power could halve

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