Markets like a cat on a hot tin roof

Cats are featuring a lot in this stock market sell-off. Type cast as the proverbial dead cat bounce, global markets are now showing real signs of life. However our investment cat appears to have stepped onto a hot tin roof as equities are jumping all over the place. Overnight Bombay’s BSE Sensex index rose 8.97% and Hong Kong gained 2.12%. …

Positive Start to 2019

In my last blog post on 10/1/19 I highlighted a number of things that would be good for equity markets, the first was the Federal Reserve, the US central bank pausing on interest rate rises. On Wednesday the Fed announced borrowing costs would be unchanged. The tone of their statement was much more dovish than previously. They recognised that inflation …

Price and value are not the same

There is a difference between price and value. An asset may have a high price but be at fair value. In other words it is not necessarily expensive. Similarly another asset may have a low price. Its price may have even fallen in recent times but that does not necessarily mean it is cheap. Terry Smith, the highly respected manager …