Market Insights 2008
You’re Next Move Could be the most Important One You Make All Year! We believe that 2009 will offer many unique investments opportunities and, with a patient approach, has the potential to be a rewarding year for investors. Asset prices across the board are severely depressed, driven down by the wave of negative economic and corporate news that swept the financial markets last year.Read the Full Note
The recent rally in the US Dollar against other major currencies shows it may have been knocked down, but certainly not knocked out. Below we discuss why the Dollar is due renaissance, and why this may actually come to the aid of faltering global economy.Read the Full Note
The global economy continues to slow and markets are dropping under the increasing weight of soaring inflation and a credit contraction. We're facing an outright bear market in financial assets so where should we as cautious investors be looking?Read the Full Note
What will be the result for the broader economy? Many have predicted a crash in the UK housing market, a view that is of no surprise given the meteoric prices rises of the last ten years. However the market has shown remarkable resilience especially in the face of recent crisis in the mortgage market. House prices in the UK are, on average, 1.3% higher than at the beginning of the year according to property website rightmove.co.uk.Read the Full Note
Having recovered from the credit-crisis induced falls at start of the year, global equity markets have once again succumb to selling pressure as investor’s fret over the declining economic growth and soaring inflation. Economic growth in the UK, as measured by real GDP slowed to a 1.8% annual rate in the first quarter of 2008 against 3.1% and 2.5% annual rates in the first and second half of last year respectively.Read the Full Note
Earlier this month the President of United States, George Bush, declared that the US was not in a recession but simply a slowdown; shortly after past-Federal Reserve Chairman Alan Greenspan predicted there was a 50% chance of US recession, and just this week the sage of Omaha, Warren Buffet declared that the US was already in a recession. Below we ponder who is right and does it actually matter.Read the Full Note
Q: Why did the Bank of England Keep Interest Rates Unchanged?
A: Because they knew inflation was back!
Even through the answer was pretty clear many where left scratching their heads as to why the Bank of England left UK interest rates unchanged at 5.0% following their last meeting. Firstly US rates have been cut several times this year to ward off the possibility of economic recession, yet UK rates remain high in contrast. Secondly the UK housing market is still in decline.Read the Full Note