Category Archives: Market Updates

The possibility of the US defaulting on its debt has moved from being a niche view, perpetuated by the lunatic fringe of the investment community, to a genuine possibility. If US policymakers do not get their acts together, it could happen as soon as 2 August, the deadline for raising the US debt ceiling. Continue reading →

Does meeting management really add value? There are fund managers who make it a key part of their sales pitch and others who dismiss it as an overplayed part of selecting the right stocks. The recent debacle at News International suggests strongly that management and business culture are still a key determinant of corporate fortunes yet others are quick to suggest a good franchise is far more valuable than a good manager will ever be. Continue reading →

The bond market has, for some time now, been turned on its head. In the credit default swap (CDS) market, which measures the cost of insuring against sovereign default, countries with the highest credit rating are trading at higher yields – in other words, with greater perceived risk – than countries with lower credit ratings. Continue reading →

Greece continues to trouble the equity markets, with the drip, drip, drip of frightening newsflow on the country’s economic picture making it largely impossible for share prices to progress. Continue reading →

The debate over the names and definitions of mixed asset funds is becoming increasingly heated and, having emerged stridently with a set of proposals at the end of May, the IMA has now postponed the implementation of new sector classifications pending further consultation. Continue reading →

Is there trouble in economic paradise? For some time now, everybody has been talking emerging markets. Even if it was not specifically about emerging market companies, it was about the extent to which UK or European or US companies were exposed to the hot growth story. But it has all gone very quiet. To what extent has the great emerging markets story gone awry? Continue reading →

On the face of it, the second half of 2011 is not shaping up well. Global economic momentum is slowing and there is a real risk a number of developed countries could slide back into recession. Also, many of the supports for the global economy are coming to an end – the latest round of quantitative easing finishes in the US this month and, as yet, there seems little support for a third instalment. The prevailing view appears to be the US cannot risk further damage to its credit rating. Continue reading →

The annual rate of inflation increased to 4.5% during April, compared with 4% in March. The Consumer Price Index (CPI) reached its highest level since October 2008 and registered a month-on-month rise of 1% during April – only the second time that prices have risen by that much in a single month. However, the Retail Prices Index (RPI), which includes mortgage interest payments, posted a slight decline, falling from 5.3% in March to 5.2% in April. Continue reading →

The recent LinkedIn floatation has had some tongues wagging about a second technology bubble and, more importantly, the imminent sound of popping. There were some gleeful reports about the amount of LinkedIn stock becoming available to short-sellers as a sign many believe it is overvalued. Meanwhile Technology & Telecoms has been the best-performing of all IMA groupings over three years, which supports those who believe the sector is about to see a re-run of its spectacular 2000 bust. Continue reading →