Japan – Land of the Rising Sun or False Dawn?

In the last six months or so I have generally not been recommending my clients buy equities, instead sell them. My advice has been to take profits and reduce risk in an expectation of a stock market sell off, euphemistically called a “correction.” This is investment speak suggesting a collapse in equity prices is actually a good thing. In some …

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 …

The Thoughts of a Contrarian Investor

Contrarian investors challenge conventional wisdom; getting them to agree with the consensus is like trying to herd cats. They do not always get it right but mavericks are always worth listening to, if for no other reason than to question your understanding on a chosen investment strategy. Perhaps the most famous contrarian investor in the UK is Neil Woodford, subject …

A Tale of Two Economies – Japan

This blog post is about how economies and the performance of equity markets are related with particular reference to Japan. The Link Between Economies and Stockmarkets It is often thought there is a close correlation between how well an economy is doing with the performance of its stockmarket; so if the former does well the latter will as well. A …

The Sage of Henley

The famous and highly successful US investor Warren Buffet is commonly known as the Sage of Omaha. He is noted as a shrewd and long term investor with a strong focus on value. He is also the source of insightful and humorous sayings on investment. It is worth googling and reading his quotes but two of my favourites, I have …

Japan Revisted

The last blog post covered Japan, today’s is a brief update. It was recently announced that Japan’s economy contracted by 1.6% on an annualised basis in the third quarter meaning the country is now technically in recession. To remind you this occurs when there are two consecutive quarters of negative growth. It is widely accepted a principal cause was the …

Land of the Rising Sun?

After a disappointing 12 months or more for Japanese equities it was interesting to read in the last couple of weeks a number of fund managers and other commentators with a strong pro Japanese market message. As is my wont I felt a blog brewing on the subject but it took Friday’s extraordinary stock market rise to jolt me into …

Half Time Team Talk

In football parlance, for investors we have just come out for the second half. So what is the half time assessment of stockmarkets in 2014? My brief comments are based on my own observations and those of Neptune Investment Management, M&G and Neil Woodford, formerly of Invesco Perpetual and manager of the newly launched Woodford Equity Income fund. Equity Market …

A View From the Deckchair

Summer is here with clear blue skies and warm sunshine. Stock markets are traditionally quiet as traders take their August holidays. So what is the view from the deckchair? We still have deckchairs in Eastbourne but for city traders it will be the view from the pool at a luxury Greek villa. Surprise surprise there are small signs of economic …

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 …