Government budget balances are misunderstood. By politicians — sometimes wilfully — and even by some economists. So it’s no wonder then, if they’re misunderstood by the public.
Global markets have been focusing on US rate cuts over the past few months. But investors are increasingly looking to governments to stimulate growth, with a record 57% of fund managers saying fiscal policy is too restrictive, according to a recent survey of fund managers by Bank of America Merrill Lynch.
Stock markets went bananas last year as China and the US appeared to finally agree on trade. But then the killing of a top Iranian general set off geopolitical fireworks. Chief investment officer Julian Chillingworth mulls the consequences.
The UK’s first December general election in nearly 100 years punctuated an eventful year for politics and the economy. Financial markets experienced a series of mood swings throughout 2019, but ended on a high as investors regained their appetite for risk. Despite ongoing uncertainty, including Brexit and trade tensions between the US and China, we remain positive about the outlook for 2020.
The yield curve has traditionally been a bond nerd’s playground. It has always struggled to go mainstream. But lately there’s been a lot of talk in the newspapers and on the radio about ‘the yield curve’ and how its ‘inversion’ is tolling our doom.
American economic measures took a dive early last week, taking equity markets with them. Chief investment officer Julian Chillingworth reckons upcoming quarterly earnings releases will set the tone for the winter.
Please Mr Trump, don't mention the war.
The global economy is sinking into a slowdown, but is this the beginning of the end? It’s too early to tell.
After almost 18 months without a setback, investors forgot what volatility felt like. That complacency has now been shattered, but sound underlying business conditions remain intact. That’s no bad thing.