For conservative investors and those who think the market turmoil we have seen this year is not over, bonds remain a safe haven, according to Standard Life's recent Investment View. Even leaving some money in the bank is okay in such a low inflation environment, it says. But for the best fixed interest returns next year take a look at corporate bonds, Mr Katz said. He believes companies will increasingly raise capital not by borrowing from banks but by issuing their own debt in the form of corporate bonds. He believes a number of bond issues on offer from big stable companies will be relatively safe.
Some companies list their bonds for trading on the stock exchange.
Most analysts predict that the housing market will remain stable over 1999. The Council of Mortgage Lenders expects to see house prices rise at more modest levels, with mortgage rates declining in line with overall interest rates. For those looking to buy a home, this means the current level of affordability should improve over the next year. Mortgage rates are expected to fall by about one percentage point by the end of 1999. For homeowners, lower rates to offset economic slowdown mean house prices have little chance of falling in the forseeable future.