Markets in turmoil? Any thoughts of a summer lull in the markets seem to have been abandoned with investors in full liquidation mode today.
In theory, this is a reaction to disappointing employment data in the US today, with fewer jobs being created and unemployment ticking up. Perhaps, though, markets had been looking for an excuse having run hard in the first half of the year.
It seems like we have finally reached a turning point of sorts whereby economic data is sufficiently weak to allow central banks around the world to start cutting interest rates. The Europeans, the British and the Canadians have already done so, Jerome Powell indicated the US Fed will follow next month.
The question now will be just how far and how fast rates get cut. The question for further down the road will be whether this once again ignites the inflation dragon.
This month we are taking the opportunity to step back a little and look at the broader dynamic at play, both political and financial at a time when events in both realms seem to be accelerating. We also provide some updates on portfolio companies including some suggested actions.
It is the height of summer across the Northern Hemisphere. The temperature is rising and I’m not only talking about the weather. As many people take a well deserved break, I want to take a step back this month and look at the wider landscape against which our investing endeavours are set. There are probably…
