Can reform make a difference to India?

The Indian economy is growing well, and the stock market has rallied with the emerging markets generally this year. Prime Minister Modi has been popular with many voters and with the international business community since first taking up the office. He has talked up his view that India needs to reform to accelerate its growth rate. … Continue reading “Can reform make a difference to India?”

Can Japan’s reforms change the game?

Two economies are associated in investors’ minds with the need for reform. In Japan, Mr Abe is well entrenched with a big majority behind his “three arrows” reforms. Designed to accelerate Japanese growth, the third arrow offered substantial changes to the way Japanese society functions and the way Japanese companies work. In India, many in … Continue reading “Can Japan’s reforms change the game?”

Why a pension could be better than a Lifetime ISA

There’s a new savings option available this tax year – the Lifetime ISA – aiming to help anyone aged 18 to 39 save for a deposit on a house, or for later in life, or both. It promises to be a useful product, but pensions remain the primary means for investing towards retirement.    What … Continue reading “Why a pension could be better than a Lifetime ISA”

Change from China?

There was little fuss when China overtook the US as the world’s largest economy, as measured using figures corrected for relative purchasing power.   There was more concern in the US as China asserted itself by claiming the nine dash line from Taiwan round to the Paracel islands, seeking control over a series of islands … Continue reading “Change from China?”

How far will inflation and interest rates rise?

In February the US inflation rate as measured by the CPI hit 2.7%. In the UK the rate reached 2.3%. The US dollar had strengthened over the previous year, whilst the pound had weakened. Both economies were affected by rising oil and other commodity prices. In the USA the arrival of higher inflation led to … Continue reading “How far will inflation and interest rates rise?”

The UK economy as pictured in the Budget

The UK budget will be remembered for the controversy over a proposed increase in National Insurance Contributions for the self-employed. This measure is designed to raise just £645m or less than 0.1% of total revenues in 2019-20.   Instead it was notable for the large movements of money brought about by changes in forecast. Where … Continue reading “The UK economy as pictured in the Budget”

The US changes the world order

The curious death of Kim Jong Nam is one of those strange random events that has gripped the Asian and wider world media.  The news item has all the ingredients for a good detective story.  The dead man was probably using a false passport.  Two alleged female assassins may also have been using false identities, … Continue reading “The US changes the world order”

France matters

Governments come and go in the Euro area. It often makes little difference to investors. The Euro sails on, the European Central Bank sets interest rates, economic policy has to bow to the deficit requirements and other rules of the EU. The scope for individual country differentiation is narrow. Countries that defy the scheme deliberately … Continue reading “France matters”

Living with Mr Trump

Stock markets have been in love with Mr Trump the great reflator. They look forward to his promised tax cuts for individuals and companies. They want his increased spending on infrastructure. They also quite admire the way he persuades big corporations to put America first and invest more of their corporate cash. They do not … Continue reading “Living with Mr Trump”

What happens when rates go up?

A look at the implications of rising interest rates in the US. The US Federal Reserve has begun the painstaking process of raising interest rates, up to 0.5% to 0.75% in December, and has signalled 2017 will contain more of the same. We believe that strong fundamentals support the idea that the US stands to … Continue reading “What happens when rates go up?”

Has the US market risen too far too fast?

Markets do not normally go up in straight line. They usually have pauses for reconsideration and bouts of fear. Investors got over their shock and dismay at the election of Mr Trump very quickly. Share markets soon latched on to the reflationary potential of the Trump tax cuts, proposed increased infrastructure spending and more interventionist … Continue reading “Has the US market risen too far too fast?”

Will 2017 be as good as 2016?

It is unlikely 2017 will offer as clement an investment climate as 2016, but the outlook is still upbeat. As the New Year dawns, investment managers have some sense of relief if they can report decent positive returns for the year just ended. 2016 was generally a good year for UK investors. UK bonds produced … Continue reading “Will 2017 be as good as 2016?”

How will investments perform in 2017?

Despite political uncertainty, and some notable surprises, UK investors have largely benefitted from some positive trends during 2016. But what does 2017 hold in store for the major asset classes? Equities It remains to be seen whether Donald Trump’s widely-anticipated reflationary policies will pass through Congress. If his planned infrastructure spending aimed at igniting growth … Continue reading “How will investments perform in 2017?”

Market predictions for 2017

After a turbulent and unpredictable 2016, Charles Stanley’s Chief Investment Officer Jon Cunliffe takes a look at what could be in store for global markets in the year ahead. If there is one lesson to learn from 2016, it is to expect the unexpected. Britain’s vote to leave the European Union and the election win … Continue reading “Market predictions for 2017”