Great Britain

  • 18 Dec
    There Are Big Global Risks Out There – Here’s How To Invest For Them

    There Are Big Global Risks Out There – Here’s How To Invest For Them

    If there’s one thing that I’ve learned from my research on financial markets, it’s that you always have to expect the unexpected. Nothing is linear, everything works in cycles and what monetary policy makers say is usually wrong.

    Last week when the FED raised interest rates, Janet Yellen said: “We’re in a synchronized expansion. This is the first time in many years we’ve seen this.”



    That might be true, but the fact is that every economy today is a global economy and the global economy isn’t synchronized. At some point, it will crack somewhere as it always does. The important thing for us is to be prepared for something like that and to see how to best position our portfolios for the consequences that a financial shock might create. More →

  • 14 Oct
    BREXIT Is Slowly Unraveling, Don’t Get Caught Up In It

    BREXIT Is Slowly Unraveling, Don’t Get Caught Up In It

    • The pound didn’t just fall last week, it has been falling for two years.
    • As the UK imports 50% more than it exports, inflation is on the table for certain along with a high risk of stagflation.
    • We’ll analyze the potential risks and rewards for in the UK and the pound.

    The British Pound

    You probably know that the UK voted to leave the European Union back in June in a move called BREXIT. The UK government hasn’t yet started the procedure of leaving, so there haven’t yet been direct effects on markets, the economy, and jobs, but something investors don’t like is uncertainty. More →

  • 27 Jun
    Is BREXIT Just Noise?

    Is BREXIT Just Noise?

    • Markets fell on Friday but they are exactly where they have been in the last weeks.
    • BREXIT is noise, investors should focus on slower global growth and fragile financial systems.
    • The market is still overvalued in historical terms but there are some opportunities.

    Introduction

    An avalanche of articles since last week’s BREXIT is forecasting terrible things for the world economy and financial markets especially. Most focus on the huge declines stock markets saw on Friday, but let us first take a closer look. The UK FTSE 100 index fell 3.15% to 6,138 points on Friday, but all-in-all it was a positive week as last week started with the FTSE at 6,021 points. More →

  • 17 Jun
    Is Global Recession On Its Way? Brexit May Be A Warning Sign…

    Is Global Recession On Its Way? Brexit May Be A Warning Sign…

    • Global GDP growth rates are stalling even with increased monetary stimulus.
    • There are several potential recession triggers.
    • It is important to assess the risks a portfolio runs as no one can know when a recession will come, but eventually it will as it always has.

    Introduction

    The main FED goals are sustainable economic growth and full employment. In order to achieve those goals, the FED has decided not to increase interest rates as the economy is still relatively weak and employment has been slowing down. Not only that, but the expectation of future interest rate increases has been revised downwards. More →

  • 19 May
    Brexit – Much Ado About Nothing

    Brexit – Much Ado About Nothing

    • The Brexit referendum has already caused trouble for the UK economy with slower growth and a falling pound.
    • Fortunately, polls show that the vote will be to stay in the EU.
    • Traders might take advantage of the situation as the pound still has lots of ground to recover to pre-Brexit levels.

    Introduction

    It seems that Shakespeare is still very popular in the UK as the country is staging a referendum on whether or not to stay in the European Union (British exit = Brexit). This article is going to research if Brexit is just a comedy and much ado about nothing, or if there are some real threats to an exit vote. More →