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Bill Adlard's Market Report
By t1ps - Bill Adlard
Bill Adlard of Chart-Guide.com
These recommendations do not constitute advice, please read the risk warnings
How will this affect stockmarkets?
Investors still seem to believe in the Goldilocks economic paradigm. Not too hot, not too cold - just right. This seems to refer to interest rates - not too high to kill off the economy, but high enough to stop inflation. In other words, they believe that interest rates will stay in the comfort zone for ever. But interest rates have to get into the discomfort zone if they are to curb economic activity. And the charts of commodities and the dollar suggest that:
The outlook for inflation will get worse
Something will cause a rebound in the dollar.
Obviously, therefore, interest rates are going to rise further - well into the zone of discomfort.
But it's not just me warning about impending disaster.
Despite the way the markets have pushed through to new highs the bigger picture remains totally unaltered: sooner or later a major bear market will start up again, but this time, with the level of debt there now is, the markets will not be able to recover as they did in 2002/2003. Everyone needs to prepare for this.
Bill Adlard is the editor of Chart-Guide.com, and renowned as a world expert in detailed technical analysis, particularly in the area of Elliott Waves.
This week's featured book from The Square Mile Bookstore is 'The Maverick: Dispatches from an Unrepentant Capitalist' by Luke Johnson - For eight years between 1998 and 2006, Luke Johnson wrote a regular column as 'The Maverick' in The Sunday Telegraph. His short, pithy essays tackled subjects ranging from rich lists to bankrupt companies, from high finance to investment techniques, from philanthropy to trophy wives. Buy it now
This newsletter was published by t1ps.com Ltd which is regulated by the Financial Services Authority and can be contacted on 020 7033 9389. The articles in it are for general guidance only and we cannot assume legal liability for any errors or omissions they might contain.
T1ps.com assurance - all editors and contributors to the Tips service will declare any personal interests they have with any individual company they are discussing.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not necessarily a guide to future performance. The difference between the buy price and the sell price for smaller company shares can be significant. Before investing, readers should seek professional advice from a Financial Services Authority authorised Stockbroker or Financial Adviser. Profits from dealing in shares may be liable to tax - the level of tax and bases of reliefs from tax are subject to change. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.
Some of the shares recommended on this site will be smaller company shares. By their nature such investments can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares.
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