Adjusting to QE, is like life after Suarez!

Just as markets are struggling to adjust to life after QE, Liverpool have yet to come to terms with life after Luis Suarez. If “QE puts beer goggles on investors by creating a line of sight where everything looks good”, it seems Suarez made…

QE to infinity!

Memories of 2008… On Wednesday the volatility in financial markets had many recounting their memories of 2008. The CBOE Volatility Index (VIX), a key measure of market expectations of near-term volatility and termed the ‘fear index’, spiked to 30.88, up from 12.03 on September…

Market volatility: a natural occurrence

Periods of market volatility, like we have seen recently, can be a challenging time for investors, particularly those without a clear plan. The headline world we live in exacerbates that feeling of fear as the media reports excitedly about “stocks plunging” or “equity markets…

IMF downgrades economic outlook

There was a lot of hype last week around the IMF’s release of their latest World Economic Outlook (WEO), in which they downgraded their forecast of GDP growth for the world economy. Entitled “Legacies, Clouds, Uncertainties”, the IMF revised downward their projection for this…

Market Recap Week of October 13th

The sell-off in global equity markets continued last week as market participants have woken up to the fact that the global economic recovery has lost momentum, at the same time as the US Federal Reserve is ending their bond buying program (QE3). However, the…

Jen says Nein

Everyone knows that the German Bundesbank president Jens Weidmann has been a thorn in the side for ECB President Mario Draghi. The Italian would love to unleash the type of unconventional monetary policy that would have financial markets salivating, the purchase of Eurozone government…

US Fed Minutes: concern over stronger dollar

The minutes from the US Federal Reserve’s FOMC meeting of September 16-17th, added to volatility last week as financial markets initially bounced on a more dovish tone on the outlook for interest rates. However, after poor German data and the IMF downgrade of the…

Why are investors only waking up to risks now?

We have known for some time that the German economy was slowing. The economy contracted by -0.2% in the second quarter and since then the business and consumer confidence surveys as well as the PMI data have shown weakness. So why are investors only…

Market Recap Week of October 6th

Global equity markets closed lower last week despite a late relief rally on Friday after better than expected US payroll data. While the unemployment rate is at a 6-year low of 5.9%, weak wage growth dynamics and the labour force participation rate being at…

The importance of long term perspective

While the global economic recovery is in the balance under the stewardship of politicians and central bankers, I have much more faith in the ability of Brendan Rodgers to bring back the good times at Liverpool FC. Football fans are like investors in financial…

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