Psst! do us a favour, the UK economy is firing ahead, would someone tell the stock market


#1

The lead indicators for the UK economy are not only positive, they have been leading the large Developed market economies. But despite this the stock
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#2

Hmmm, food for thought @neilhermon. I think everyone is just a bit spooked because of what is happening in Iraq/Syria and with Russia/Ukraine.

 

There is nowhere else you can put your savings though so I think the stock market will start progressing again once and if we get stability with at least one of these situations and preferably Ukraine.


#3

Be interesting to see if UK companies start taking advantage of the strong pound to buy overseas businesses. All we’ve seen recently is UK companies being taken out either because our currency was weak or because foreign companies wanted to redomicile here to take advantage of our lower corporate tax rates.


#4

I think that fear of rising interest rates is part of the explanation. Hopefully this should not have a massive effect on the stock market because

  1. The rises should be gradual

  2. The interest rate after all the rises is still expected to be fairly low.

I also agree with LUKAS on worries about Russia/Ukraine and Iraq are affecting confidence.

 


#5

It’s taken a while but I agree with @lukas and @warrenstar that the worry about what Russia is doing is worrying investors.

Like @warrenstar says we’ve all been well guided that rises when they start will be gradual so as not to put too many people in to default with their mortgages.

I’m not too pessimistic overall.