Rugby, Balloons and Employment Data – so much to consider this morning, but what this market needs a dose of common sense, understanding of central banks, and catharsis. Real interest rates and normalisation will provide solid foundations for real growth and recovery – not market froth!
The big story in the market has been the humbling of Indian conglomerate Adani. Who could have guessed? But the real issue isn’t that a company may have fooled the market over its value, but that the market never worked out how improbable the valuations were. Time to check up on risk management!
Markets have a habit of getting over-excited. They get FOMO and become over hasty. Although the outlook is improving, there is certainly little to justify some of the more speculative hype dominating market moves. Time a bit of rational thinking and common sense – consider Tesla as an example of misplaced hopes.
While the rest of the world hiked to fight inflation, China has embarked a sprint to reopen the economy; easing rates, mortgages, property lending and loans. The question is can it succeed when demographics, trade and the laws of growth may have already moved against them?
Gold – can’t eat it, can’t use it, but its everything crypto never was: tangible, exchangeable, a store of value, and a kitty for when things get tough. In uncertain markets…. Don’t forget the yellow stuff.
I have worked in finance for nearly 40 years. I have withstood phycotic managers, overcome multiple business hurdles, survived a major health scare and triumphed as a small firm guy against big vested interests.. but I am pretty sure it will British Railways that will put me in a box. This morning a rant:
Gosh… The Rest of the World wonders how the UK has suddenly become a corruption-raddled third world kleptocracy. The optics are terrible. Even the Russians are moving out! Fortunately, there may be a solution: let’s be British about it, and show everyone we can do political knavery better than anyone else!