Besides being somewhat cathartic, when writing these commentaries, periodically I’m reminded of what a fast-paced world we live in. Yet, at the same time, it also reminds me of how easy it is to be caught like ‘a rabbit in the headlights’ and be psychologically paralysed by the noise and sensationalism we are exposed to daily. I completely understand how it seems so much easier to do nothing but hunker down and safeguard one’s money.
After all, the strategy might have worked before but when managing wealth, the key is to adapt to change.
One of the biggest threats to eroding one’s wealth is inflation, and the non-participation in what has been called the 8th wonder of the world, compounding. Interestingly, this was the second clue where you guess a connection from a series of clues in the quiz show ‘Only Connect’ last week. One of the few questions I have got right in recent weeks!
Only last week I expressed doubts about the ability for a ceasefire to hold between Israel and Lebanon. We have had the escalation of the conflict in Ukraine. In Tbilisi we have riots and protests as Georgia is being pulled towards Russia for its governance. In South Korea, martial law was declared on Tuesday, but it was voted down despite soldiers being put in place to prevent any backlash. Now the South Korean President faces impeachment in a vote this Saturday.
Finally, Michel Barnier, the French Prime Minister has resigned due to a vote of no confidence against his government after he tried to force through his Budget. The toppling of the government has thrown France into crisis, politically and economically.
It’s probably an understatement to say, there’s quite a lot going on. Yet, the markets continue to be buoyant.
On our agenda this week we have:
- Demoralised bears
- Cash savers have missed out
- Time to ditch National Savings?
- UK M&A activity is alive and kicking
- Downgrade for British Industry
- UK property price rises may be a sign of things to come
- Rate cuts expected to accelerate in Europe
- Summary
Demoralised bears
This was the heading in a Bloomberg article this week. It goes on to say that those predicting a ‘bear market’ are demoralised because for all the concerns about bubbles, recessions and geopolitics, investors almost everywhere are embracing risk.
One of the main reasons is the comments from the Federal Reserve Chairman, Jerome Powell, who said recently that the American economy is in “remarkably good shape”.
The MSCI’s All-Country World Index is at a record high, rising for a third straight week.
Continues…
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Risk warning
Please Note: This communication should not be read as giving specific advice regarding your personal circumstances. This would only be given following detailed assessment of your individual needs. The value of investments may fall as well as rise; you may get back less than invested. Past performance is not necessarily a guide to future returns.
