Buy: equities, gold, bonds and oil soar; does this mean bye-bye common sense?
5 Nov 2010 [0 Comments | 578 views]
Markets went on a spending spree yesterday, setting all-time highs and post-recession highs for a range of assets, including shares, oil and gold. Some of the movements were contradictory, with assets that normally do well in times of peril rising, as well as feel-good securities. But the headline really relates to the fact that major [...]
Will quantitative easing fuel the next bubble?
3 Nov 2010 [2 Comments | 1,165 views]
As a result of the recent mid terms, Republicans now dominate the US House of Representatives, meaning any attempt by Barack Obama to try and get approval for further fiscal stimulus will be vetoed. That leaves quantitative easing (QE) as the only game left in town. More QE will probably follow. The consequence of this [...]
Pound falls to seven month low against Euro
25 Oct 2010 [0 Comments | 901 views]
Sterling dropped so that there were just 1.126 euros to the pound last night. That was the lowest exchange rate since March. More to the point, the fall in the pound has occurred quite rapidly. This begs the question, why? To put the fall in sterling in context, in early September there were 1.20 euros [...]
Gold glistens for now, but does its sparkle deceive?
21 Oct 2010 [4 Comments | 605 views]
Which way next for gold? We thought it was time to sum up some of the arguments made here over the past few months. The reason why gold has done well over the last couple of years surely relates to uncertainties over the currency markets and the beginning of the end of dollar hegemony. As [...]
New government austerity liked by the markets, but is this just animal spirits?
11 Oct 2010 [0 Comments | 446 views]
Since the UK’s new government announced plans to implement its austerity programme, the yields on UK government bonds have fallen sharply. In short, markets have given the UK government the thumbs up. It is just that this morning, the FT quoted a top man at the OECD for slamming the markets. It seems the markets [...]
Germany may pull out of Euro, predicts Joseph Stiglitz
4 Oct 2010 [1 Comment | 1,361 views]
Nobel laureate Joseph Stiglitz, a former chief economist at the World Bank and arch critic of the IMF, has made an interesting prediction. He has not forecast the end of the euro, as some are paraphrasing him, rather that the euro may continue, but with one member missing: Germany. From Ireland’s point of view, things [...]
Pound slides at the prospect of new quantitative easing
4 Oct 2010 [0 Comments | 565 views]
Sterling fell to a five-month low against the euro over the weekend. You don’t need to look far for an explanation. Markets are expecting a new wave of quantitative easing. It is just that from Ireland’s point of view, it is all rather unfair. Last week the battle between the hawks and the doves of [...]
The cult of equities is still dead, claims bear
7 Sep 2010 [0 Comments | 713 views]
Bond are expensive. Very expensive. The yield on UK, US and German government bonds has fallen through the floor. This means that for investors looking for income, equities are looking decidedly more attractive. For this reason many are predicting a boom in share prices. But for every bull there is a bear. And in the [...]
The bond rally strengthens: does this bode good or bad news for equities?
17 Aug 2010 [0 Comments | 584 views]
The yield on ten-year UK government bonds fell to just 3.04 per cent last night. The yield on five-year gilts fell to below 2 per cent for the first time ever last week. The yield on German bunds is at an all-time low. As yield falls, price rises, and right now the price of government [...]
China gyrates to become world’s number two economy, as currencies tap out the economic rhythm
16 Aug 2010 [0 Comments | 386 views]
Sterling has hit a new 20-month high against the euro. China’s yuan has seen its biggest weekly fall against the dollar in two years. There is talk of the yen hitting an all-time high against the dollar. Mirroring the changes on the currency markets, China has overtaken Japan to become the world’s second largest economy. [...]
