Monthly Update 30/04/2022
Monthly Update30 April 2022 Major equity markets were predominantly negative during the month. With inflation moving higher, the potential for an economic slowdown, even recession was increasing, with consumers having to adjust to a higher cost of living. An economic slowdown is rarely a positive for corporate earnings, particularly for those companies who find themselves […]
Ear to the Ground
The market was caught off guard yesterday when US economic growth for Q1 came in much weaker than expected. The economy contracted by an annualised 1.4% in the quarter. This was well below the 6.9% annualised rate…
Ear to the Ground
This week saw the release of the latest economic growth projections by the IMF. Within this they forecast that the global economy will grow by 3.6% this year. This is 0.8% lower than the prediction which they made in January. Even following…
Ear to the Ground
Inflation again took centre stage this week with the release of key data for the UK and the US. In the UK consumer price inflation rose 7% in the 12 months to March, the highest reading since…
Ear to the Ground
This week saw the release of the latest minutes from the FOMC meeting. Whilst they increased rates by 0.25%, the minutes revealed that many members would have preferred a 0.5% hike. Without the conflict in Ukraine, it is likely…
Ear to the Ground
As inflation continues to surprise to the upside and the cost of living increases, the market is now pricing in more interest rates hikes in the US, more than the recent Federal Reserve Dot Plot indicated. There are now 8 hikes of 0.25% fully priced in by the market…
Monthly Update 31/03/2022
Monthly Update31 March 2022 Major equity markets were again mixed during the month. Most initially fell sharply as the events in Ukraine and the impact on commodity prices, inflation and economic growth continued to unfold. As the month progressed indices rallied as some of this risk aversion was reversed, with US and Japanese equities ending […]
Ear to the Ground
In a further sign that certain stocks are priced for perfection we saw another technology stock take a tumble this week when it missed on expectations. This time it was Roblox, the open gaming platform, who on Wednesday saw their share price fall 26.6%. In good news for the company it reported 49.5m daily…
Ear to the Ground
Central banks were at the fore this week, with meetings at the Bank of England and the US Federal Reserve. The Bank of England, as expected, increased the base rate by a further 0.25%, taking it to 0.75%. The MPC voted 8-1 in favour of the move, with one dissenter voting to keep…
Investment Topic: ‘WYSIATI’
The above jumble of letters may appear a strange way to begin an investment topic. However, this arrangement has significance in terms of the way in which we view things, including investment opportunities. Indeed, in the world of behavioral finance, this can play a significant role. So, what does…
