Politics matter in markets – and despite a new Premier, the UK will likely remain far from fixed and a long way from political stablity. The problem is finding a pragmatic approach to Brexit.
Despite US inflation hitting a 40 year high, US growth stocks rallied – reflecting the belief inflation and recession will be short and sharp. It’s a fair bet – but go back into growth stocks eyes-wide-open, and don’t be fooled by the most dangerous myth surrounding Tech – Personalities!
Blain’s Morning Porridge – July 13th 2022: How long and deep is Inflation, and how close is China to a…
Shock new data unveils the BBC’s plans to destroy the UK economy through Wimbledon and Glastonbury overkill. Maybe we should just cancel June and July?
Inflation will dominate the headlines while the US earnings season kicks off. The prospects for stocks on the back of falling numbers and crashing consumer sentiment bode ill for recovery, and strongly suggest there is further market downside to come in Q3.
The world is watching for signs confirming global recession, so naturally markets have rallied (!). Political instability is resolved to be replaced with some bleak truths and spending choices. So.. steady at the wheel, nothing to worry about then?
Don’t be distracted by the antics in Westminster – there is a major market shift going on between the End of the World being triggered by Inflation, or Recession destroying everything. Relax. European Energy policy will probably kill us!
The tragedy of Boris Johnson continues. The question is not why did they leave, but why have others remained in the bunker with him. Just what has Boris promised the new Chancellor, and does what is good for Boris coincide with what is good for the UK?
Lots of comment about imminent crisis in the ECB and European Bond Spreads. Relax. It’s a difficult circle to square, but the politics mean its more likely solutions will be found, and its buy Italy, Spain and Greece on the dips!
The US has been a great Anglo-Saxon creation and experiment, but the way in which 6 conservatives hold the reins of power, and are showing they are prepared to flex them is causing rising doubt.