Why is investment the life blood of the economy?
While stock markets have been very volatile to say the least over the last 18 months it is worth remembering that investment into the UK economy and UK companies is the lifeblood of the future of the country. The ability and necessity for companies to grow and individuals to receive a return on their investment is the backbone of any economy and the UK is no different. Any recession and any boom time in the past have been dictated by the levels of investment funding available and actually delivered.
Those who prefer to save their money "under the mattress" are literally seeing the value of their nest eggs reducing on a day-to-day basis. While inflation in the UK has fallen substantially over the last few months towards a period of deflation, this is most certainly not the norm. In more traditional markets inflation could be anything from 2% upwards and will in fact reduce the spending power of your money unless invested or placed into a savings account. Over time, without receiving either interest on a savings account or a return on investment, your money will slowly but surely reducing in value in "real terms".
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