Economy Archives - Moore Stephens Financial Services

Don't panic

Black Monday?

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There are two ways of looking at global stock markets today. The bearish side which will be spread across news headlines tomorrow saying that a financial crash is underway prompted by China; or the bullish side which views stock markets as pausing from a sustained rally before rebounding through the rest of 2015. As ever we won’t know which view is right without hindsight, but our opinion at the moment…

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Market cycle

Signs are afoot that the market cycle is starting to turn again

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Inflation in the UK is currently at 0% in comparison to the consistent UK inflation target which is 2%. In an environment where the issuing of capital by way of Quantitative Easing will at some point lead to inflation, the current 0% rate is confusing. Part of the answer though is energy prices. The fall in the oil price brought energy price inflation down and that takes time to feed…

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The UK election and the economy

Stock markets and the UK election

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The UK election machine is in full flow with the usual woolly rhetoric designed to outdo other parties rather than tell the British public and corporations what will actually happen as a result of electing them to power. In essence, there is an element of scaremongering going on. What does this mean for markets though? Inevitably, there is a little bit more volatility on a daily basis, but we are…

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Interest rates are going up but Cash ISA rates are going down

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Last week Mark Carney, Governor of the Bank of England, pronounced that interest rates in the UK will shortly have to rise. Friday 13th June saw stock markets fall significantly in the wake of this comment. As with last year’s trepidation over the US tapering Quantitative Easing, Carney’s comments caused similar concerns in investment markets. The question is why such comments are causing such dramatic results when it is widely…

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The Woodford effect

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2014 is proving to be the year of the ‘Woodford’ in terms of investment funds. Every publication we pick up, every advertisement from fund supermarkets is all about buying Woodford at the most competitive price. From our perspective though, is any price worth paying? For those unfamiliar with this star of the investment world, Neil Woodford is the former manager of the multibillion pound Invesco Perpetual income funds, aside from…

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Houses, interest rates and the bubble

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Mark Carney, Governor of the Bank of England, recently publicly expressed concern over fundamental problems affecting the UK housing market. This was a timely reminder that, despite signs of economic recovery, all may not be what it seems. If you check houses for sale online with any regularity you will have noticed a continuing trend of upwardly moving prices and quick sales. There are significant numbers of houses under offer within…

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For Growth, Add a Little Mexican

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South American markets haven’t performed particularly well in the last year or so, but it is clear that one Latin American country, Mexico, has the potential to do very well as the global economy emerges from recession. This is the view of Neptune Investment Management’s Latin America fund manager, Tom Smith speaking at Neptune’s recent investment conference in London. Tom makes the point that investors tend to focus on Brazil…

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