Further volatility in equity markets today will have investors getting more and more concerned. This is a time to sit on hands and do nothing. There is every good chance that the problems with the infected banking system will be stabilised any day soon. In the meantime, here is another interesting article from Max King, the investment strategist. Please Click Here
Max King is a strategist commissioned by our associates Eden Financial. This is his latest article which is an interesting read. Also, attached to the article are some equity recommendations but please be aware these recommendations are those of Eden Financial and not Admiral which does not advise on individual equities. Please Click Here to read Max King’s article.
Here are two useful documents on the topic of stockmarket recoveries. Just click the following links to view them;
For views on the Bail out deferral please click here.
Equity markets became even more volatile last week and a note I received from Schroders may be of interest to some clients. Schroders think the bottom of the equity markets may now have been reached. Please Click Here to Read
M&G are also saying that they expect corporate bonds to aggressively beat cash returns over the next 12 months or so and that inflation could be as low as 1% by the end of 2009. The slowing economy will see interest rates being cut maybe to as low as 3.5%.
Both set of comments are interesting and highlight the wisdom of having well diversified portfolios. If you would like to visit the different asset allocations for each level of risk you can take Please Click Here
For those interested in seeing how markets, commodities and currencies faired technically last month please Click here to read more
It has been a while since we all started to become aware of the impact of the sub prime mortgage crisis and the subsequent credit crunch. This article by Schroders details the real problems banks now face in terms of funding options. When one of their three major sources of funding ended indefinitely known as Secured Term Funding (securitisation or covered bonds) where were the sources of funding going to come from. This article explains the problems that banks and our economy now face and one of the reasons Alistair Darling will do another U Turn on the growth rate of our economy.
Max King strategist and economist gives his views on the current state of the economy.
FTSE-100 (5364.1) ended Tuesday’s session 40 points in the red although the most significant feature of the day’s trading is that the leading index was able to rally so smartly of the session lows, at 5282 or so. Such price action gives the clear impression that selling pressures are drying up (in the near term at least) and that in turn suggests that the market could be about to experience some more upside. This morning’s price action has seen the FTSE moving through the March lows at 5414 -that’s a clear positive and if it manages to close at current levels or higher it will start to look like a correction of the decline is underway. A 38.2% retracement of the slide that began in May would imply an upside target of around 5575.
Interesting read of markets etc, purely from a technical and not a fundamental view point.
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