Markets and the ‘real’ economy are out of whack

Invest or guess

Is this a good time to invest in stocks? Probably not. The dislocation between markets and the real economy is, in my opinion, unsustainable. Extremely powerful monetary policies and stimulus measure put in place by central banks and governments to protect the ‘economy’, have given the green light for markets to go crazy! The markets are a-wash with money. But investing now will likely become a mistake. How can you fail? Throwing a dart at a random list of stocks will likely give you a winner in this market! This…

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Stocks continue upward grind

Stock grind higher

Stocks continue to grind ever higher pushing many indices to reach new peaks as global stocks play catch-up with the U.S. The S&P 500, for example, is now only around 5% from its year high – a remarkable recovery from the March 23rd low. The index is now 40% above its coronavirus collapse. Forward PE multiple has risen to a twenty year high of 22.40 making shares rather expensive – but this isn’t holding it back. Can this recovery continue? Will there be a shock to U.S. GDP in the second quarter? U.S.…

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Stocks continue surge despite economic concerns

Stock Market

Tensions between the U.S. and China flared up further again today. China reportedly rejected a U.S. proposal for the Security Council to meet over the issue, whilst U.S. secretary of state Mike Pompeo declared that Hong Kong is no longer autonomous from Beijing. This morning China is also reported to have approved the controversial security legislation for HK. Tensions are showing signs they could bubble up even more and potentially boil over – I worry about an embattled U.S. president in this election year facing a national crisis at home and what he may…

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Global stocks continue to ride hope of pandemic recovery

Virus vs the Markets

Too fast too soon? Blind hope or sensible policy? Governments around the world attempt re-opening, but is it too early? Will we be hit with a second wave of the coronavirus? Hope is that the worst of the pandemic is behind us now. How can we know? What does the science say? According to the WHO, we should be very cautious and prepare for a second wave as infections are expected to spike. But for the moment, markets appear very happy with recovery hopes and of the recent vaccine news.…

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Stocks surge again to set new record highs in shadow of coronavirus (COVID-19), 12th February 2020

Stock grind higher

Stocks up – shrug of coronavirus Stocks yet again set new records ignoring the potential threat of the coronavirus – (COVID-19). Despite the worrying number o uncertainties the virus brings with it, and there are many, stocks climb ever higher! This may be for a number of reasons:- Central banks preparedness to act and prop up economies using interest rate cuts and monetary stimulus is never far away – it’s as if there is nothing to fear. Good news – bad news, bad news, good news. Never fear, a central…

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S&P 500 and Nasdaq set new records

S&P 500 record high

New records set – 10th February 2020 Wall Street’s S&P 500 index closed up at a new record high Monday of: 3352, virtually ignoring fears surrounding the coronavirus outbreak. Nasdaq set a new record too. S&P 500 closed up at an all time high of: 3352 Nasdaq closed up at an all time high of: 9623 Anxious Anxiety about the virus has been countered by stronger than expected U.S. corporate earnings and the expectations that global central banks will step in to support economic growth. Stocks therefore, continue to climb!…

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Market madness or the new norm?

Popping the balloon

Shoulder shrug! U.S. markets have pretty much shrugged off everything that’s been thrown at it for some time now – and markets are likely ignoring the carnage the coronavirus could bring. It does seem utterly astonishing to me that U.S. markets are trading at near all time highs despite the direct concern the virus presents to global markets. Why are markets ignoring the virus Could it be the FOMO effect – ‘Fear of Missing Out?’ Or greed? Or could there be a simpler reason? Where do you put your money…

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Asia shares stabilise as China stocks regain some losses

Market high

What a difference a day makes China’s stock markets steadied and Asian stocks recovered some losses after falling back on Monday. However, sentiment remains fragile as investors continue to fret over the growing human and economic costs of the coronavirus outbreak. Japan’s Nikkei 225 climbed nearly 0.50%, and Hong Kong’s Hang Seng regained 1.3%. China’s Shanghai Composite gained 1.2%. U.S futures joined in to regain some losses and look set to open higher later. European markets opened up in early trade Tuesday morning. The FTSE 100 climbed to 7440 as…

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China coronavirus fears mount as stocks tumble

China stocks fall

Chinese stocks sink 8% on first day of trading since 23rd January, amidst coronavirus scare Sharp drop but not shocking! Investor’s fears were realised after traders returned to their desks after an extended holiday period. Chinese officials attempted to allay panic selling before trading resumed by injecting liquidity into the money markets. On Sunday 2nd January 2020 – the Peoples Bank of China unveiled plans to add 150 billion yuan into the banking system to help fight against the affect the coronavirus may have on the markets. To add more…

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Coronavirus affecting global trade?

China stock market

The World Health Organisation (WHO) will meet again on Thursday 30th January 2020 to decide whether to declare an international public health emergency over the coronavirus outbreak. Affect on businesses reported so far as global stocks react to the virus outbreak LVMH, owner of luxury brand Louis Vuitton says it has closed some stores in the Chinese city of Wuhan following the outbreak of the coronavirus. Transport links to Hong Kong closed. British Airways suspends flights to and from mainland China. The UK plan to move UK citizens out of…

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