Justin is one of the most recognisable and trusted market commentators on television, radio, and in the press.
Originally trained as a lawyer, he has observed the retail market industry for 20 years whilst at Barclay’s Stockbrokers and developed a unique understanding of the market’s roles and benefits for the private investor.
Each week we will bring you Justin’s latest thoughts and commentary.
For a taster of this week’s article please continue to read…
Summer slump or Summer sale?
Well what a week. We all know markets don’t carry on up in a straight line and there was always going to be a pull back at some stage, but as ever, nobody ever knows quite when it’s going to happen. The ‘why’ bit is a little more predictable in that we can see some of the issues ahead of time, but it is always going to be difficult to judge the impact on value and confidence.
Firstly the withdrawal of Quantitative Easing (QE) and the resultant stimulant induced financial highs, was always going to pose a threat of financial cold turkey and the consequent market nerves. But of course QE hasn’t actually been withdrawn or even cancelled, it’s just that good notice has been given.
However, the Feds are no fools and the last thing they are going to do is endanger recovery by changing policy too soon. Bernanke’s knowledge of the Depression will have given him some clear examples of how not to do it. The rate rise and government expenditure cuts in 1937 are the obvious example – these actions threw the US significant economic recovery back into recession.
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