Here’s the second in our crystal ball gazing series of expert predictions for 2010 (see the first from lovemoney.com’s Ed Bowsher here), this time we’ve got the thoughts of Jasmine Birtles who runs MoneyMagpie, is also a finance journalist and writer of several books, including “The Money Magpie“.
I asked Jasmine for a few predictions, and here’s what she had to say:
We are coming out of a recession and I think that there will be opportunities for small, lean businesses to build well and strongly – particularly those in growth sectors such as technology.
However, I think this year will be a shock to the system. In 2008 we had a huge set-back, then in 2009 we got used to it and the government put in some measures to ease the blow. However, most of those measures will be taken away next year and we will have to fend for ourselves in a much tougher climate.
VAT will be up from 1st January which will make most things more expensive, then we will have higher taxes and increasing benefit cuts. I expect petrol to go up too as oil prices are likely to rise and this has an effect on the cost of everything. The increased taxes and cut in benefits will have to continue for a few years to pay off the enormous debt that this government and our banking system have created for us.
I think there will be another stock market crash, probably in the earlier part of the year and house prices will bump along the bottom, maybe beginning to rise slightly at the end of the year. Interest rates will probably rise in the second half of the year which will finally be good for savers but bad for those in debt.
We’re at the start of the new seriousness, the new sobriety which is likely to last for most of the decade. Personally I think it’s not such a bad thing – ban the bling I say and let’s start living a real life again.
Thanks for your time and thoughts Jasmine!
photo credit: Shoes on Wires