The Hunter' Tails - The Chastity of cranes…
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!
“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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