It looks like the old saying “Sell in May and go away” has just been turned on its head. After cratering for seven weeks, the S&P 500 index ended last week up 6.6%Continue reading
While all eyes are on what central banks will do with interest rates, consumers and investors alike should really worry about what commercial banks will do.Continue reading
European stock markets recouped all the ground lost since the February 24 Russian invasion of Ukraine, but investor optimism may be misplaced.Continue reading
The Bank of England has ignored inflation for so long that is now clearly behind the curve, and getting more and more desperate to catch up.
But the central bank is in danger of scuppering its own purpose by ignoring another big change to the economy: Brexit.Continue reading
Those who worry that the extraordinary stock market rally will come to an end in 2022 may be worrying too soon: equities could still power ahead, and particularly so in Europe.Continue reading
Inflation is here to stay, rather than transitory, no matter what central banks are telling us. But rising inflation could help make the global economy more efficient. Here are three potentially positive consequences of high inflation:Continue reading
After Brexit, the UK seems to be jumping randomly from one crisis to the next, and the government seems strangely unperturbed by the general distress.
Partly, this can be attributed to the politicians’ own failure to learn. Prime Minister Boris Johnson has proven again and again that he is prone to repeating past mistakes — the way he handled the multiple lockdowns in the Covid-19 crisis is the best example of this.
But what if at least part of it is deliberate? There could be a couple of reasons for which crises suit Johnson and his government very well, at least for a while.Continue reading
The queues for petrol in the UK are perhaps the most important post-Brexit moment for Boris Johnson and for those who followed his advice and voted to leave the European Union.Continue reading
The perfect storm is brewing for UK inflation. Boris Johnson and his government will not admit it, but their choice of a hard Brexit will exacerbate price rises, on top of the effects of the Covid-19 pandemic.
This could put the Bank of England in the unenviable position of having to choose which bubble to burst: consumer prices, or house prices.Continue reading
Recent capital flows highlight a paradox: investors are afraid of inflation, but seem to have increased their allocation to just the assets that would do worst out of it.Continue reading