Gold – can’t eat it, can’t use it, but its everything crypto never was: tangible, exchangeable, a store of value, and a kitty for when things get tough. In uncertain markets…. Don’t forget the yellow stuff.
I have worked in finance for nearly 40 years. I have withstood phycotic managers, overcome multiple business hurdles, survived a major health scare and triumphed as a small firm guy against big vested interests.. but I am pretty sure it will British Railways that will put me in a box. This morning a rant:
Gosh… The Rest of the World wonders how the UK has suddenly become a corruption-raddled third world kleptocracy. The optics are terrible. Even the Russians are moving out! Fortunately, there may be a solution: let’s be British about it, and show everyone we can do political knavery better than anyone else!
Around the globe everyone thinks inflation is beaten. It may well be, but the consequences will persist. Interest rates may not “pivot” the way market optimists hope, with profound implications for equities and bonds. We are into a new market cycle of normalised rates and corporate fundamentals. All-in-all, that’s a good thing for growth!
Banks are as safe as houses, till the moment they aren’t. Investment banks think the AT1 hybrid capital market looks cheap on the basis higher rates are good for banks. Rising defaults.. not so much. Bank hybrid capital is a complex area and not for the faint-hearted or ill-informed.
The UK stock market hit a new high yesterday! And its all due to Brexit – apparently? Sometimes we bet on red and it comes up black. As long as the UK remains delusional about making a bad call, the nation will continue to underperform and sink down the league tables. We could make national honesty a strength!.
Delighted to hand this morning’s Porridge to my colleague Julian Wheeler, who reminds us not to fight the Fed, making the argument against deep recession and for stock market upside. Markets are about differing views and perspectives – and despite my latent bearishness, I find myself in agreement with much of what Julian says.
Consumption and a cost-of-living crisis are upon us, but markets blithely assume it’s all upside to 2023. The risk is not a massive crash, but growing realisation the global economy has peaked, needs a period of normalisation and a reset after the madness of the last decade.