This week’s Covid Inquiry in the UK has been revelatory for what it revealed about political incompetence. That’s a good thing – a timely reminder that politics is about service rather ambition. Better politics = better economies.
Post-pandemic markets are challenging! We’re juggling multiple crises from inflation shocks, market wobbles and policy normalisation. Markets today are adjusting to the last 14 years of extraordinary monetary policy which have distorted the basis of markets and economic behaviours. Addressing them will be a long-term market challenge.
How much has Covid changed people, markets and the way the global economy works? The event has triggered significant phycological, behavioural and expectational changes across society, and we can only guess how they will ultimately play out in terms of consumption and politics. It ain’t over till it’s over!
Markets are welcoming victory versus COVID, but the next crisis is upon us: Energy instability. The consequences could be dramatic..
Lockdowns and travel restrictions highlight the economic damage Omicron has done to the whole European Economy. Corporate resilience will be severely tested – whatever governments decide. The likelihood of stagflation has risen, but markets are likely to benefit from buy-the-dip mentality as investors weigh-up renewed government support if/when it turns nasty!
The Omicron Variant dominates the headlines, but will likely prove a short-term market factor. No doubt a renewed round of panicked responses, lockdowns, travel bans and Christmas threats will occur, but markets should take these in their stride – the biggest risk is margin calls triggering something deeper.
Short porridge this morning as I’m angry and in a rush. As the UK government flounders in yet another storm of sleaze and corruption accusations, its venality and crass opportunism appears to be spreading through the economy, and is likely to hold back the recovery of personal and business travel.
The risks of Plan B and a further Covid Lockdown are multiplying. It will clearly impact markets, but the real economic effects of Covid combined with energy costs, supply chains and bleak company earnings forecasts may be pushing us towards stagflation anyway.
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.
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!
