A volatile start to 2022

Widespread declines in January Leading equity markets generally fell during January amid concerns over the prospect of higher interest rates in the US, the impact of the Omicron variant, and mounting tensions between Russia and Ukraine. The Vix Index – which tracks expectations of future volatility – rose to its highest level in over a … Continue reading “A volatile start to 2022”

Inflation: not so transitory after all

Inflationary pressures are real and are looking increasingly persistent rather than transitory. Investors need to be wary of the assumption that all equities can weather an inflation storm. Inflation is now over 5% in the UK. This is considerably ahead of the Bank of England’s targets and also ahead of its expectations. To date, stock … Continue reading “Inflation: not so transitory after all”

Targeting Pricing Power

UK Inflation has jumped to a decade high, hitting 4.2% in October. These prices rises have been widely predicted by, among others, the Bank of England and the Office for Budget Responsibility. This is uncomfortable for consumers, who are facing vastly increased costs on everything from car hire (up 30%) to air fares (up 28%) … Continue reading “Targeting Pricing Power”

Looking back at the markets through May 2021

A selection of articles looking back through the markets last month.   Global Market Review Markets gripped by inflation fears Although global equity markets generally ended May in positive territory, investor sentiment during the month was affected by growing concerns that mounting inflationary pressures could lead to higher interest rates. “The shadow of Covid-19 is … Continue reading “Looking back at the markets through May 2021”

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?”