The Hunter' Tails - The Chastity of cranes…
“Nothing has really changed, and markets remain distorted by the bandages of bankers”-Artemis Fund Managers
Below summary of article written by Anthony O'Brien
For the first time in history, government debt has been sold in Japan at a negative yield. It is indeed a funny old world – especially for Central Bankers!
Admittedly, there’s been some relief – the Ebola panic seems to be subsiding. The US economy continues to perform and the ECB has started buying bonds sooner than expected.
Europe’s car sales are recovering, and Spain’s unemployment has come down. China’s economy is managing a soft, rather than a hard, landing. Less expensive oil should see consumers, ah, consume.
Yet the bottom line is that nothing has really changed, and markets remain distorted by the bandages of bankers.
So our best guess would be ‘range-bound’ for a while. In Europe, resilient businesses that can increase earnings even when economic growth is anaemic are worth some consideration.
For UK Growth, meanwhile, Tim Steer has been buying more EasyJet: oversold on Ebola, and cheaper fuel.
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Frequently Asked Questions about this Article…
When government debt is sold at a negative yield, it means investors are essentially paying the government to hold their money. This can happen in uncertain economic times when investors prioritize safety over returns.
The article mentions that the US economy continues to perform well, providing some relief amidst global economic uncertainties.
The European Central Bank's bond-buying has started sooner than expected, which is seen as a positive move to support the economy and stabilize markets.
Yes, the article notes that Europe's car sales are recovering and Spain's unemployment rate has decreased, indicating some positive economic developments.
China's economy is described as managing a soft landing, which means it is slowing down gradually rather than experiencing a sharp decline.
The article suggests that less expensive oil should encourage consumers to spend more, potentially boosting economic activity.
The article suggests considering resilient European businesses that can increase earnings even when economic growth is slow.
Tim Steer has been buying more EasyJet shares because they were oversold due to Ebola fears and are now benefiting from cheaper fuel prices.
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