We are not at the end of the cycle July 25, 2018 | City Talk The last few months have been characterised by a more elevated level of financial market volatility than we saw over the previous 12-18 months. Rising geopolitical risk had much to do with this development. Donald Trump has raised the prospect of trade wars and the election of a populist government in Italy has increased tensions [...]
Venture capital finds that its lunches are being eaten July 24, 2018 The news is bad for those who hoped that the clocks could turn back, that ICOs might go away. There are now strong signals that not only are blockchain and cryptocurrencies here to stay but token offerings and ICOs too, as their novel merits are increasingly appreciated in the mainstream. PwC recently published its third [...]
A look at ‘ICO advisers’ July 24, 2018 Last week we looked at use-cases for the blockchain. This week I want to talk about advisers on ICO projects, and how to evaluate them. For full disclosure: I am an adviser to three currently running ICOs. In the beginning, advisers were brought into ICO projects to broaden the skillsets and experience of the core [...]
What lies in store for the euro? July 24, 2018 | City Talk The euro area has made reasonable economic progress in recent years. It has been recovering from the Western banking crash and credit crunch of 2007-9 and from the euro crises of 2011-13. A general calm has descended thanks to Germany and the other surplus countries depositing their money at the European Central Bank (ECB), which [...]
‘Natural income’ vs ‘decumulation’: what’s the best way to take income from my investments? July 23, 2018 | City Talk The goal of many investors is to build a portfolio that can generate sufficient income to replace traditional sources, but this isn’t as straightforward as it may seem. It is essential to understand the different methods of extracting money from your investments. How money is withdrawn can dramatically affect the length of time until that [...]
Two years on: how Brexit has affected the UK economy July 22, 2018 | City Talk The UK economy was supposed to plunge into recession soon after the vote to leave the EU, but the majority of forecasters were wrong. Consumer confidence remained positive, encouraging increased spending, despite a slowdown in almost every other sector of the economy. As household consumption is a large contributor to GDP growth, it more than [...]
Elon Musk’s fall should bring our stratospheric expectations down to earth July 20, 2018 Stop what you’re doing, everyone. Elon Musk – serial entrepreneur, space crusader, and cult figure to climate progressives – has given us the one thing we never expected to see from him: an apology. The Tesla founder had little choice. While the world was celebrating the miraculous rescue of the 12 boys and their football [...]
Last Week in the City: August rate rise now less likely July 20, 2018 | City Talk Garry White, chief investment commentator, looks at the market-moving events that have shaped the UK equity markets this week (16 to 20 July 2018). The chances of an interest rate rise at the Bank of England’s August meeting appeared to recede this week after inflation data was more subdued than expected and retail sales data [...]
How a World Cup run might turn £1 into £65,000 – the power of investment compounding July 20, 2018 The World Cup is underway, so what better way to explain the miracle effects of compounding than via a football analogy? We recently attended a meeting of company pension fund trustees where the chairman felt the need to clarify one observation with the line: “And, of course, because of compounding, a 10% increase in performance [...]
How might a trade war play out? July 19, 2018 | City Talk The Trump team appears to see trade wars as a central policy rather than a bargaining strategy. With the possible advent of further tariffs on European and Chinese exports, we look at the potential consequences such as higher inflation and lower growth. The impact on interest rates and currencies While the US has begun to [...]
