2022 has been unprecedented in terms of the challenges facing the world economy. The post covid boost in asset values due to massive government stimulus funding and interest rate cuts has been replaced by tightening, high inflation and interest rate…
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As far as the US S&P 500 index is concerned, we are nearly in bear market territory with falls of almost 20% this year while the FTSE100 is down 7%. Investors have endured the pain of a pro-longed decline in…
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Equity, credit and bond markets around the world have posted negative returns in the first five months of 2022. This has been driven by a combination of historic re-pricing of asset values due to the tightening of monetary policy in…
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The economic outlook for 2022, as predicted recently by both the Bank of England (BoE) and the US Federal Reserve (Fed) is one of slowing growth and raising inflation. The Fed is expected to see inflation peak first and is…
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The election of Joe Biden in November 2020 was expected to become the start of a massive re-investment in America programme that paved the way for the decarbonisation of the USA and the upgrading of the country’s faltering infrastructure. The…
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The Federal Reserve as expected, raised the Federal Funds Rate by 0.5% to 1% on May 4th in order to combat rampant inflation. Jerome Powell, the Fed Chairman has in the past stated that he thought inflation to be ‘transitory’…
Read more... As recently as last summer, when talk of inflation pressures were starting to be foreseen and raised as a concern, the Bank of England was inactive on rate rises. The Government had also not wanted to raise rates as that…
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Just like the UK, Europe is starting to fall into low growth and high inflation. The combination of these features is a major challenge to governments and central banks as they seek to stop prices running higher but not causing…
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The war in Ukraine and the associated sanctions placed upon Russian institutions, companies and individuals is increasing the risk of a greater shock in commodities and supply chains. This adds to the case for longer term high inflation and slower…
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