What does the Rugby World Cup tell us about markets? Expect the unexpected? Ignore nothing and don’t bet on favourites? Perhaps.. As the geopolitical threats pile upon each other, it’s time for caution. Forwards win games, but backs stop it being lost!
It was a disastrous weekend for UK energy strategy as the biting cold and lack of wind demonstrated the fallacy of wind as “the” renewable solution. Energy security requires predictable power. Meanwhile, Central Bank mull rate hikes and implications for dollar strength.
The last few days have confirmed we are in a Global Economic Energy War. It is remaking the global order – and will have significant long-term effects on Global Markets. As the sides shift, there will be winners and losers.
The news looks bleak. A cataclysm of gloom is set to sink Europe and the UK – but, maybe things aren’t as bad as we think. Good news and a realisation things can get better could stabilize sentiment, and build a recovery base. Maybe?
Winter is coming as soaring gas prices are set to bite across Europe. Putin’s energy insecurity strategy has proved his major success and could yet win him the Ukraine War. Stagflation is nailed on it Europe.
The world is watching for signs confirming global recession, so naturally markets have rallied (!). Political instability is resolved to be replaced with some bleak truths and spending choices. So.. steady at the wheel, nothing to worry about then?
After the brutal lessons of April, May will set the tone for a new market – lots of threats, but full of opportunity.
If we are seriously considering a massive investment in nuclear to mitigate climate change, it might also be sensible to consider hydrogen too. Could hydrogen be a useful fuel source for a carbon free future too?
The West will win the economic war against Russia, but it will take time and impose recessionary costs, while triggering pain across markets (including the housing bubble). But when it’s done… it will time to put your buying boots on!
Inflation is the market’s theme today. Markets expect it, but are they prepared? Inflation doesn’t necessarily spell disaster, but it will force change in the way we think about markets – and Tech will likely be the sector that feels it most!
