Economic Review August 2020

FASTER REBOUND; SLOWER RECOVERY As recent economic statistics confirm the UK officially entered recession, Bank of England (BoE) forecasts suggest the slump will be less severe than previously thought, but the ensuing recovery is likely to take longer. Data released by the Office for National Statistics (ONS) showed the economy shrank by 20.4% between April … Continue reading “Economic Review August 2020”

Riding out the storm together

Global stock markets are suffering a period of volatility as a result of the COVID-19 outbreak. Markets do not respond well to uncertainty, but what is certain is that volatility is synonymous with stock market investment; and although market movements can be concerning, we have all become much better at expecting the unexpected. On Budget … Continue reading “Riding out the storm together”

Investors take steps to protect against a downturn

Fears of a global downturn and other pressures such as Brexit are prompting UK investors to take a defensive stance. Higher-growth equities are being ditched in favour of more stable bonds and gold, which are seeing extraordinary demand. The US-China ‘trade war’, economic slowdown in Germany and worries about a no-deal Brexit have given the … Continue reading “Investors take steps to protect against a downturn”

What lies ahead for investors?

Just over ten years since the start of the global financial crisis, and the global economy is now in recovery mode. Investors were hit hard, with UK and global equities falling by 46% and 38% respectively in the aftermath. Aggressive policy stimulus implemented by central banks and governments was instrumental in reducing the depth and … Continue reading “What lies ahead for investors?”

Is Ryanair’s cheap model doomed?

The valuation of Ryanair has fallen by about €1.9bn since the low-cost airline revealed it was cancelling thousands of flights. Are the wheels coming off its business model? The phrase “stack them high, sell them cheap” has been attributed to Tesco founder Jack Cohen – but Ryanair chief executive Michael O’Leary has taken this phrase … Continue reading “Is Ryanair’s cheap model doomed?”