Markets panic over good news

There have been times in the past when the markets got it into their collective head that it was time for buying, even though there were good reasons to think it was really a time for panicking. Take 2007: in that year, the Dow Jones passed a new all-time high,...Read More

Are markets dominated by feral hogs, bond vigilantes, or all round nice guys?

During the height of the euro crisis, politicians in Europe, and indeed central bankers, blamed the markets and credit ratings agencies. Yesterday an official at the Fed followed that tactic too.

Richard Fisher, president of the Dallas Federal Reserve, told the ‘FT’: “I do believe that big money does...Read More

Posted Jun 25, 2013

Markets ditch safety and risk

Yesterday was a day for selling. But it is noticeable that while gold fell to a 34 month low, and US government bonds to a 22 month low, on the whole equities merely fell to a one month low.

At the time of writing gold is trading at $1,295....Read More

Posted Jun 21, 2013

Prepare for bond crash, or prepare as markets move to risk

QE is drawing to a close; that is reason to panic. QE is set to be ramped up; that is reason to panic. That is what some say who see any news as bad news, including news that is totally contradictory.

The US is back, and the economic crisis is drawing...Read More

Posted Jun 03, 2013

Bubble watching: from Chinese debt to US student loans

Time was when people thought a bubble was something kids blew, and you put into a bath.

Time was when the South Sea Bubble and Tulip Bubble were things that only historians seemed to know about. “This time,” to coin a phrase, “it is different.” Bubbles are now things that not...Read More

Posted May 24, 2013

Markets take fright: are they afraid for a good reason or just scared of the shadows?

In Japan the Nikkei 225 had risen from 8,515 back in October to 15,627 earlier this week. Yesterday the index lost 7.5 per cent, falling back to 14,483.

In the US, the Dow rose from 12,542 last November, to 15,387 earlier this week.

In the...Read More

Posted May 24, 2013

Fed at sixes and sevens

The markets like QE. You could say that in much the same way as you could say the sun is quite hot – that is to say the sun the star, not the ‘Sun’ the newspaper. But what will happen when QE is finally stopped, even reversed? Yesterday may have...Read More

Posted May 24, 2013

FTSE 100 hits 21st century high

With the FTSE 100 now into the mid-6700s, it is in territory not seen since the last century. Indeed it is only 200 points off passing its all-time record set in December 1999.

But can it last?

There is clearly a disconnection between the FTSE 100 and the UK economy, but then...Read More

Posted May 21, 2013

UK bonds fall to nine month low

And so it came to pass that after suffering a simply horrible week of economic news, the great god of the markets smiled down on the UK.
See: Osborne’s septimana horribilis – or that was the week that he rather never was.

So just to remind you, retail...Read More

Posted Apr 23, 2013

Are markets defying common sense?

It was another record breaking week for markets in the US, with the Dow and S&P 500 hitting all-time highs and finishing the week down by a fraction from the peak. In fact, the Dow did end last week at 14865, up 2 per cent on the week, and up...Read More

Posted Apr 15, 2013

© Investment & Business News 2013