Sunday, 25 March 2018

Stories we should be thinking about

Stories we should be thinking about

Not an easy last week with the S&P 500 down 9.9% from its late January high
and as part of this the key US index had its biggest weekly fall since January 2016.
Some wise words via Hedgeye...

...but it seems like the President is not being as talkative on the subject of the
stock market:

Hmm...well we have the potential trade war to worry about now...

So we have heard a lot from the US on this subject...but what about China?  
Well some useful comments from the Middle Kingdom over the weekend e.g.
"China renews pledges to open economy, protect IP rights” but they clearly
are not going to be a pushover (link here):

China pledged on Sunday to press ahead with market opening and
reforms while reiterating that it will treat domestic and foreign firms
equally and protect intellectual property rights.

So is this the start of retalitory efforts?  Well like Europe, China is more wedded
to global trade proportionately than the US...but China (and Japan) are big Treasury
purchasers.  Put it all into the mixer...and there is a basis for negotiation...if the
individuals are up for it.  

No doubt stock markets will be heavily influenced over the next holiday shortened
week by this.  Quarter end too...may well be interesting out there! On balance I think
conditions are opportunistic and - as always - know what you are investing in and
why. Keep following my Twitter feed during the week for more individual company
observations and insights.  

In terms of an economic policy direction I completely agree with this sort of reform
focus noted below (link here).  Got to encourage risk-taking and investment rather
than just financial engineering such as buying back shares.  Supply side changes
remain all-critical.

Turning to Europe specifically...a slightly worrying Brexit story (link here)...
You can read the rest of Stories we should be thinking about HERE.

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