When I wrote to you last month, it was on a summer Friday with markets in full on liquidation mode.
Despite a brief period of respite we are back in a very similar situation today. Put simply, the markets are concerned about global growth with weak economic date across the US, China and Europe. There is no doubt now that a rate cutting cycle is upon us.
The question markets are posing is whether rate cuts will be enough of a tonic for an anemic global economy or if the much feared recession is now unavoidable and finally upon us.
Those concerns are reflected in market weakness across the board, with oil down by 7% this week alone. It is a time to be careful, but also to be on the look out for opportunities.
A market environment like this is one in which discipline is important, whether that is in the form of stop losses or in making sure that the companies we invest in have the financial firepower to weather downturns.
Equally, we should be open to opportunities that present themselves as investors throw the proverbial baby out with the bathwater.
With Labor Day now behind us in the US, the summer is drawing to a close in the Northern Hemisphere. I hope all of you had the chance to enjoy some warm weather and take some time off. I doubt any of you took the opportunity to visit Cox’s Bazaar, the longest sandy beach in…
