If you would like to receive our Global Market Outlook bulletins, please subscribe here

With the US Nasdaq technology index having fallen 28% from its high on January 4th, it and other equity indices rebounded from their downward spiral during the penultimate week of May on the expectation, rather than the hope, that inflation is peaking, and that the Federal Reserve is on top it. The belief is that the…

March closed on a note of optimism for equity market investors but April’s stockmarket performance was full of pain, especially for those exposed to the technology, transportation and emerging market (notably China) sectors. Since 1996, April has statistically been the best month for developed market investment returns, followed by July. There is no real rhyme or…

From being heavily oversold in late February, equity markets rebounded strongly in the last two weeks of March as a combination among investors of a fear of missing out (FOMO), buy the dip, and some careful optimism that Putin might seek a way out of continuing the war in Ukraine, all brought to bear in…

For the second time in two years, discussion of global investment markets and investment strategy seems totally inappropriate when there is a threat to civilisation.  Nevertheless, markets are reacting to the world’s condemnation of Russia’s actions

Equities around the world continued the bull run in 2021 which started amid the pandemic in March 2020. It turned out to be the first year in 16 that the S&P500 outperformed the Dow and the Nasdaq. The 500 rose 27%, the Nasdaq rose 22% and the Dow 18%. France’s CAC40 was the surprise star performer…

The pandemic has resulted in many people losing their jobs, and those worst affected by a ratio of 57.5% to 42.5%, are women, according to a survey last week in the US. The task of having to look after an elderly relative and / or young children usually falls on women. This undoubtedly has much to…

Largely unnoticed the dollar has gained strength steadily. It is now at it highest level of the year, up 5% since the lows of May, supported by a sell-off in both bonds and equities as quantitative easing (QE) begins its unwinding in the US.As investors have returned from Summer holidays, September, which is historically a…

Chinese technology stocks, pummelled during July and the early part of August, rebounded during the second half of the month as buyers came in to snap up shares which had been subject to overreactive selling in the wake of a crackdown by the authorities seeking to ensure there is no monopolistic behaviour among the major…

Does China really want to go to war with the West? Right now, it feels like it, not in the military sense but from an economic point of view.  China does not want the West muscling in on its ambitions to take over democratic Taiwan, nor does it want to be told how to treat…

Over the last 12 months there has been a greater understanding of the word ‘vulnerability’ and how it relates to individuals and businesses.  An individual can be vulnerable to making incorrect decisions in their day to day affairs because of an aspect of their health, because they have suffered bereavement, because they have lost their…

Equity markets went off the boil for the first three weeks in May, continuing a lacklustre second half of April, but they finished the month with something of a mini-crescendo. European stocks completed their fourth consecutive month of gains, indeed the German, French, Spanish, Italian and British indices all finished higher for the month. Chinese…

Does the US stockmarket have a feeling of exhaustion? Maybe it is rather pausing for breath after what has been a remarkable run since March last year.US stocks reported record earnings from the first quarter, and although the SP500 and the Nasdaq reached new highs, volatility is negligible (less than 20 on the VIX). The…

Several events rocked the markets during March: a sudden spike in US 10 year Treasury yields due to the bond market refusing to believe the Federal Reserve can hold interest rates at current levels until 2023; a consequent rapid shift in sentiment from growth (technology with hoped-for earnings) to value (dividend payers with actual earnings…

10 year Treasury yields rose sharply in the US at the end of February, and it caused the technology sector, which is largely priced on the promise of future growth, to experience quite a downdraft. The market is not so tolerant now of companies which are highly leveraged on promise, and if inflation is round the…

Those investing in US stocks over the last 10 months have had an uneasy feeling seeing their investments going up day after day without a pullback. The higher the market climbs without pausing, the harsher the sell-off is likely to be. Such has been the flow of capital from central banks in general but from the…

Look forward to 2021! This should be a good year, with the roll-out of the vaccine, pent-up demand for theme parks, outdoor event attendance and participation, and overseas travel. Peripheral stockmarkets around the world should rise in the same way American and Chinese markets rose last year, although a degree of caution suggests that anticipated…

November was the best month on record for equities across the globe as they averaged a return of 13%. Markets are comfortable with a Biden victory in the US election (resulting in a stalemate between Congress and the Senate thus less likelihood of radical tax changes) and there is expectation of less international trade confrontation….

So, will it be ‘divide and conquer’ Trump or ‘another empty seat at the kitchen table’ Biden? Incredibly, Biden is guaranteeing that “nobody earning less than $400,000 will pay a penny more in taxes” if he gets elected. That only 1.8% of the American population will pay higher taxes seems a very high bar for…

The Lifetime Allowance (the limit of the amount of pension fund which can be accumulated in the UK without incurring an excess charge) is currently £1,073,100. What is not widely understood is that if the allowance is breached in terms of accumulation, no excess charge is incurred until the fund is fully ‘crystallised’ by making plans…

China was responsible for starting the corona virus pandemic last year, and now they’re taking full advantage of the fear and uncertainty being caused across the world as a result of it. The cold war with China started too early to affect 2nd quarter blow-out earnings from leading tech stocks Apple, Amazon, Facebook and Alphabet…

The US Federal Reserve has said it will not raise interest rates until 2023 at the earliest, in an attempt to assure businesses that they will not have to deal with an increasing cost of finance to keep or get their business going in the wake of the covid pandemic.  It is understandable that all…

Sell in May and be an idiot!”, was how CNBC’s Jim Cramer summed up his appraisal of the 4% rise in US stocks last month.  Traditionally, “Sell in May and go away – come back on St Ledger’s Day” has been a decent mantra by which to abide if investors wish to preserve gains made…

The fact that everyone now, wherever they live in the world, is affected in some way by the effects of the pandemic, and possibly will be for another four to six months, is enough to make any investor think twice about investing new money in the stockmarket. It seems trite to be talking about the…

It has been the worst week for stock markets since the financial crash in 2008, evidenced by the US Dow Jones going from a record high to correction (usually defined as down 10% but in this case the Dow fell 15.5%) in a record 10 sessions, and the VIX volatility index rising over 100% in…

No one likes to hear about the spread of a previously unheard of virus but the corona virus emanating from China has thankfully put a break on the equity markets which were beginning to trade on over exuberance. The World Health Council declared the virus a world health emergency on January 31st, and what at…

If you would like to receive our Global Market Outlook bulletins, please subscribe here

© McLAREN WEALTH MANAGEMENT | All Rights Reserved

logo-footer

STAY CONNECTED: SEARCH WEBSITE: