Central Banks are playing the “lower for longer” interest rate card to reassure markets on growth. There are always consequences of such actions – ranging from bubbles, delusion and fraud. Eventually consequences trigger change, and reassessment – which is driving the rotation from Hope as a Strategy Tech into Fundamental stocks – Autos are a good example.
Europe's vaccine rollout is in tatters as a result of stupid politics and a desire to blame the UK, while the UK has just sent a very unsubtle message about Europe looking after itself. Its a silly playground squabble that needs to be resolved quickly, but at its heart is the usual European problem: Britain vs France.
Why is Europe suspending the AstraZeneca Vaccine? What’s the real story? And; The trick to investing in disruptive tech is to spot the solution to a need, rather than an answer looking for a question.
The UK should be flying high on the success of the vaccination programme, government stimulus and the expectations of growth, but the negative news optics and an increasing sense of government mismanagement could unsettle recovery.
What is going on in Europe? The political and economic options are limited, the outcomes predictable, and none of them are good. But don’t worry - Europe can always blame the UK and AstraZeneca.
Consequences are unavoidable. Pension savers are crushed by interest rate repression and the changing demographics of Covid, while the deluge of debt fuelled by low rates does nothing for economic sustainability.
It’s not what you know about value – it’s what the market believes that matters when it comes to price. Will Call My Agent win the streaming wars? And will widespread adoption fuel a massive boom in Socks… just the shills say has happened in Bitcoin?
Seven factors to understand the market shift that’s roiling markets; bond yields and inflation, distortion, recovery, leverage, tech vs reality, exuberance, and value.
This morning: Welcome to the New Morning Porridge! Its International Women’s Day! How strong might be the fallout from the collapse of Greensill and unravelling of Gupta in a market already wary of politicians?
Central Banks face a critical ask; how to raise rates to avert fuelling the financial asset bubble without triggering market meltdown. And some brief thoughts on Scotland.
