Bread and circuses are one of the ancillary costs of dictatorship. Where do military parades come in that equation? The future lies in Bond Yields, but tradition and national spirit remain a key part of the decision to invest in nations.
The UK economy is lethargic and slowing. One of the primary reasons is how much young workers devote to soaring rental costs – leaving their discretionary spending battered, and life fulfilment difficult. The lack of housing security is leading many of them to question why bother? Solve that problem, and the economy could thrive.
The Israeli strike on Iran has roiled markets. Not unexpected, but the consequences could have been much worse if the Israelis had used low-yield Tactical Nuclear Bunker Busters.
StableCoins? I am told they are revolutionising finance. Really? Stablecoins and other tokens will replace money, stock, shares and everything else… apparently. But can someone explain, simply, in plain English, how, what, and why they are better than what already exists?
Today’s UK Spending Review is Chancellor Rachel Reeves opportunity to overcome the largely unwarranted negativity around her, and seize control of the narrative to demonstrate financial, economic and political competency – vital to keeping the bond market open and receptive.
Trump has deliberately escalated domestic protests in California into a test of National Will by federalising the Marines. What will it mean for markets? Global Investors will become become increasingly concerned at how distracted Trump is as the Bond Market looks increasingly unsustainable.
The collapse of the Musk/Trump bromance surprised no one. But the speed at which its unravelling raises massive distraction risks to further challenge the myth of American exceptionalism. While Musk may still be the world’s richest man – Trump could well shatter his companies. Tesla is already a busted flush, and crisis in the Starship programme at Space X could end the Musk Myth completely.
The market is full of noise, but the facts are more important. The data suggests slowdown is coming. The noise is getting louder as doubts around spending, bonds, inflation and economic slowdown mount. And to cap it all, a fight between Elon Musk and Donald Trump could massively destabilise US Politics.
Yesterday, the UK unveiled its long-awaited Strategic Defence Review. The implications for markets, both for Bonds and Equity, and the cohesion of the West are massive. The SDR represents an opportunity and challenge.
Markets and the global economy are subject to how the world is changing – get used to it. Trump is not the cause – he just one symptom of how geopolitics, politics and technology are all undergoing periodic change.
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