We certainly do live in interesting times and this is making investment decisions difficult. I'm first to admit I've been somewhat gloomy on the mkt in recent times, probably prematurely as we increased cash positions in portfolio's, however the inescapable reality is that markets are disengaging from the current economic environment and we're seeing rising asset prices rather than rising economic activity. Cheap money over and above corporate earnings is underpinning this recent rally, and to my way of thinking that creates an obvious risk. Another interest rate cut is highly unlikely to prompt consumers/borrowers to instantly spend, while it will inflate house prices even further. Rising house prices doesn't necessarily buoy sentiment - in fact, I think there's a strong case to the contrary. Read more; (VIEW LINK)


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James Marlay

Good read James, thanks for sharing