Investment Intelligence

I regularly attend investment seminars for IFAs run by Invesco Perpetual called “Investment Intelligence.” In a presentation last week the speaker reviewed the global economy and markets and addressed the issue of the US Federal Reserve unwinding its Quantitative Easing or QE programme. As you are aware central banks in the USA, UK, EU and Japan have undertaken considerable asset …

Shares can go up as well as down

European stock markets have rallied today. As I write the FTSE 100 is up 2.29%. Up to now it was the case that “shares can go down as well as down,” so today’s rise is a welcome respite. However it could prove to be a dead cat bounce, a temporary relief rally with no life in it. (No cats were …

Trouble Across the Pond?

Much of the recent investment news has been focused on the US economy, not unsurprising since this is the world’s largest and most significant. Back in May Ben Bernanke the Chairman of the US Federal Reserve, equivalent to the Bank of England, announced that tapering of quantitative easing (this round is QE3) might commence shortly. Currently the Fed is buying …

What’s Hot, What’s Not?

Apart from the weather, some investments are hot and some are cold. Of course I am referring to current buying and selling trends by investors. These trading decisions should be based primarily on economic and investment fundamentals but often sentiment and investor psychology is a key reason why investors trade. This is not always logical or proportionate. That said there …

One Sort of Right, One Sort of Wrong!

It is always a useful if sometimes a salutary exercise to review one’s investment predictions. Sometimes you get it right and sometimes wrong. Some recent blog posts highlight this for me. In my post “Equity Rally, Equity Income & Monsters,” of 27/1/13  I suggested the second quarter could mark a downturn in the stockmarket rally. In the last few weeks …

Gold – In Bubble Territory or a Good Investment?

There is probably no other asset class where you hear such widely differing opinions from financial experts and fund managers as gold. Many are bearish citing the 12 year bull market and signs that quantitative easing and other central bank asset purchases are ending. QE is supportive of gold prices due to currency debasement and creating inflation. In addition with …