If there is common theme to some of the market’s speculative bubbles its their thin supporting veneers of fake credibility and plausible deniability. Trump’s Social Media empire, Bitcoin and Evergrande – all share a core of fundamental emptiness.
As UK bank reporting season kicks off, the dull, boring, predictable UK banks should look good. But the reality is they are dinosaurs – their failure to digitise and evolve leaves them vulnerable to tech-savy FinTechs and Challenger filling their niche. If the future of modern finance is a Tech hypersonic missile… British Banks are still building steam trains.
The biggest risk to markets have always been policy mistakes by central banks and/or governments. The risks are rising as confusions about inflation abound. The reality is Central banks have tripped themselves – by assuring us inflation was transitory, they’ve pretty much nailed on its permanence!
One simply can’t ignore a bleeping email. So much for being on holiday, but this week I will simply observe and repeat: please don’t break the market while I’m out!
Boris whipped the Tory faithful into a frenzy with his “wizard” economic plans, but it was empty, hollow and doomed bluster full of soundbites and repeating policy mistakes like austerity and higher taxes. It’s time for Government to get radical and retro-build the economy from top to bottom – all of which is imminently possible if they learn the lessons of the pandemic.
The market has apparently shrugged off the platform outages and whistleblower testimony on Facebook’s prioritisation of profits over people. Or is Facebook mortally wounded and a regulatory quietus inevitable? Can the social media genie be put back in the bottle?
Fraxious markets as stocks wobble, fears rise, energy prices spike; what’s to worry about? Preparing for inflation would be one thing – but being ready for opportunity is another!
Christmas is cancelled as supply chains crumble, stagflation mounts and jobs are lost… How long will it last, will there be a buying opportunity, and what will a new normal economy look like?
Understanding what is going on in China means understanding the politics – which should be very familiar to students of 1970’s and 80’s US films.
October is the cruellest month for markets. What to fear most? Markets? Energy? China? or America? Or will it be a “no-see-um” that sinks us?