Markets are being whipsawed by rate hike threats from Central Banks, China lockdowns, the Ukraine war, while being stalked by inflation and stagflation. The big risk remains policy mistakes – trying to solve these with the wrong monetary and fiscal policies.
Macron’s victory has been hailed as a market plus, a win for Europe and common purpose, but it’s likely just a crisis averted, perhaps, for a few more years. Around the globe populism will likely be fanned by inflation, food and energy insecurity and become an increasingly destabilising force on markets.
The Ukraine War has catalysed a tsunami of negative economic events around the global economy – and markets are remaining pretty much blind to the long-term consequences.
Netflix just experienced its’ judder moment – and it is shaking markets. Overnight the streamer became a completely different investment proposition, even though we’ve been warning it was inevitable. There are lessons to be learnt across the equity market.
What nefarious plan does Musk have in mind for Twitter? How does it relate to his empire of cars, tunnels, satellites, rockets and neural-links? How real is it and how much is hype. What is Musk playing at? Your guess is as good as mine.
The often missed point about ESG is directing investment to encourage corporate social responsibility and good corporate governance. British Airways is a screaming failure on both aspects – time to take away the flag logo, the name and flag carrier status. Sell!
Why do we worry so much about debt, the dollar, inflation and growth, when the only really, really important things are Energy, Food and Commodities and how we pay for and get them?
Populism is a massive threat to markets. Inflation, tax-hikes, petrol costs, poverty, political mismanagement and a host of other failings could further destabilise the West, while markets seem determined to stay euphoric whatever the evidence to the contrary.
