Equity and bond returns to slow to snail’s pace, warns Gross
21 Jul 2010 [0 Comments | 139 views]
Bill Gross, he of “UK is sitting on bed of nitro-glycerine” fame, has become a fan of US debt. Mr Gross, the guru of bond investing, reckons the US is the place to put one’s money. The point is, Mr Gross is worried about Uncle Sam’s debt, but can’t think of anywhere better to put [...]
Gold: which way next?
15 Jul 2010 [1 Comment | 264 views]
The attractions of gold are obvious. Europe is in debt, and so are the US and Japan. Every country in the world wants a cheap currency. The euro is sure to collapse, so are the dollar, sterling and the yen. In the race to the bottom, a gold medal awaits investors who spot the inevitable [...]
When it comes to the economy, gold does not glisten
20 Jun 2010 [0 Comments | 242 views]
It’s happening. Where are the surplus countries to cut their wealth? Forget the euro, and sterling. The dollar may be enjoying its last hurrah. China absolutely does not want the yuan to fill that role. That leaves a certain yellow metal. According to the FT, Saudi Arabia’s reserves of gold are twice the size we [...]
Markets celebrate as China makes soothing noises
28 May 2010 [0 Comments | 298 views]
It was another busy day yesterday. Will the dragon come out to play, or go back in its cave? That’s the big question. By ‘dragon’ of course is meant China, and by coming out to play we mean lend lots of money to indebted foreigners. The question is, can the Eurozone continue to expect money [...]
Sell in May and go away, or get out while you can
26 May 2010 [0 Comments | 410 views]
Sell in May and go away. That’s one saying we could use to explain the latest turmoil to hit the markets. The stock market has predicted nine of the last five recessions, that’s another one. Are we in deep trouble again, or is it all just hype? Scanning the Internet, there is no shortage of [...]
Stock markets: is it like 2008, or just a case of springtime nerves?
26 May 2010 [0 Comments | 323 views]
May is a notoriously bad month for share prices. Every year, this column pulls out the same old expression, sell in May and go away. And there is no shortage of economists who reckon the latest upheavals are little more than our annual springtime panic. Ian Harwood, who is the chief economist at Evolution Securities [...]
Meltdown II, and can synthetic life save the day
21 May 2010 [0 Comments | 463 views]
Oh dear, it’s been another day of crisis. If you have a nasty cold, and you take some miracle drug that masks the symptoms so you can go out and play in the sun, what happens when the effects of the drug wear off? Answer: you feel even worse. If you are in debt, and [...]
Merkel desperation
19 May 2010 [0 Comments | 478 views]
The German government banned naked short-selling and speculation on government bonds yesterday and the markets punished Germany. The move may yet go down in history as a wise, bold move. It is more likely it will be recalled as one of the great errors. The impact on the UK’s fiscal funding challenge – so far [...]
Markets hang further than parliament
7 May 2010 [0 Comments | 620 views]
Fears over Greek contagion spread to the other side of the pond yesterday as markets, indifferent to the UK election, saw their nerves stretched to the limit. The Dow saw a quite extraordinary day of volatility, Angela Merkel made the most passionate speech of her career as she warned the EU itself is under threat, [...]
Record petrol: China’s treadmill to hell; and the sweet smell of China’s surging imports
9 Apr 2010 [0 Comments | 405 views]
Oil is up again. More to the point, petrol available on the garage forecourts is up even higher. Meanwhile, China is in trouble. At least one fund manager reckons China’s property market is on a treadmill to hell. (Not quite sure how that works, by the way; we thought the whole point about treadmills is [...]
