After some tumultuous weeks in global markets, where do we go from here in terms of the dollar, inflation, energy, China? It’s all terribly complex, but probably good news for some and bad for others. The UK is likely on the loser list.
UK Chancellor Jeremy Hunt did an excellent job presenting a tough Austerity budget as a route to potential future growth, but Labour has many valid points: words are cheap, actions speak louder, and the Tories were straightjacketed into Austerity by their previous incompetency.
Last week saw a succession of fundamental shifts in how the global economy is working: inflation, China’s reopening, western politics, crypto, Climate Change, Tech stocks, and in Ukraine. These all have significant potential market implications.
Halloween is a great time to be scared about markets. They are inconsistent, confused and uncertain, but the reality is even rising interest rates, inflation and trade wars sort themselves out - eventually. The real danger is how much worse bad politics and make a scary situation absolutely frightful.
Something is rotten in the state… A deep rooted canker underlies the current crisis. Removing it will give the UK a real chance at some kind of Brexit Bonus, Growth and Prosperity. But we have to change, and change utterly.
“Leverage, Liquidity and Volatility upturn markets, triggered by policy mistakes, ignorance, hubris or plain getting it wrong. These are dangerous times as multiple issues threaten confusion – so some simple market mantras might help!”
Well, that was a fun week… but the UK’s travails are the tip of the iceberg of market pain facing the global economy. More political, geopolitical, liquidity and leverage driven crises are coming as markets reverse out the QE era. Don’t Panic!
The headlines could not be bleaker in terms of open political plots within Government and The Bank of England undermined internally and externally. This is how nations fall – this is not what the UK deserves.
It’s too easy to write off Europe to the multiple threats of recession, low-growth, energy and inflation, but it has previously surprised us by its’ resilience! How will it fare with potential energy dislocation, fiscal and monetary risks and Russian disinformation? Can the Energy war be won?
The UK is not bust or broke. Smart investors are actively looking for bargains in the wake of the Trusster**ck. Its time for change to monetise the value of the UK for the UK!.
