With interest rates remaining low, will people finally start spending? Stimulus is again on everybody's lips and the yield play has run hard accordingly. Equities again surged on poor economic data overnight, led by Europe, as investors rub their hands together in glee at the thought of more free money for longer. For an old player like me, even after 5 years of seeing this phenomenon, watching markets rally on poor economic and macro data creates an uneasy feeling. When rates turn, it is likely to significantly unnerve markets. But I feel this reversion has been pushed further into the future by the respective Central Banks. However, while the market has embraced low interest rates and hence bought yield it has not yet charged into the Discretionary Retail space, this is an area investors should be watching carefully as its showing a little life. see our full report: (VIEW LINK)


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James Marlay

Interesting to see consumer confidence also rebounding post the budget. Appears to have regained most of the lost ground since May. Also recent data shows that confidence in household finances are growing. Assuming we don't just keep saving it could bode well for retailers...