Stock markets feel like they are running out of momentum – but that should not lead to fears of a no-see-um crash, rather a more fundamental assessment of the reasons why? In the UK, Plan B – National Economic Suicide by winter Lockdowns – looks on the cards. And, despite all the wonders of Big Tech and promises about how much better it makes our lives – most of it is pretty pants.
Highlight event today is Apple launching new bright-shiny-things. Apple is unique – it has a monopoly of being Apple! For how long?
The market is worrying about the potential of an October crash, but what might trigger it? Two suspects: a resurgent Coronavirus and/or a global supply chain cardiac triggering stagflation? And top tip from my father: teach your kids to Ski, Sail and play Tennis!
The UK’s decision to hike taxes and put a sticking plaster on the cash-haemorrhaging NHS highlights serious issues for Soveriegn Debt Investors. Expectations on interest rates and currency markets are one issue, but the competency of governments to manage the quantum of debt raised through the pandemic and avoid rising uncertainty will be increasingly under the microscope.
China’s clampdown on big tech is painted as the Party’s programme to engineer a more socially-equal economy. This puts China way ahead of the West where the consequences of monetary distortion and the pernicious effects of social and wealth-inequality are well understood, but no one seems able to address them.
Who cares who replaces Angela Merkel? But the likely inability of the ECB to address the consequences of monetary experimentation and inflation in coming years could cause Germany’s coming generation of bland political nobodies to be superseded by something more populist and chaotic, creating all kinds of problems for Yoorp.
The increasing use of the word “treasure” to define wealth, money and resources is a fascinating linguistic shift with implications for attitudes to the way money is managed. However, changing words won’t stop the powerful threads of self-delusion and groupthink that so dominate markets today.