Lots going on this week, as always, with the highlights being:
- UK inflation hitting the 2% target
- The betting fiasco around the timing of the election
- Nvidia becoming the world’s most valuable listed company
- And the S&P 500 once again reach a record high.
US markets continue to strive forward, albeit still led by a handful of stocks. Ideally, we will start seeing a broader rally and it’s good to see some encouraging signs across other sectors, if not in the immediate space of Artificial Intelligence (AI).
On a Price Earnings Ratio, European and UK stocks now look more attractive.
Stimulating me this week has been the words of Hugh Gimber, a Global Market Strategist at JP Morgan Asset Management and someone who I speak with regularly. I always value Hugh’s insights and his article in Investment Week reinforces many of the things we have spoken about recently. I have interspersed his comments with our take at Blue Sky, and additional comments from recent reports/ articles (in blue).
On this week’s agenda:
- Seizing opportunities amid higher for longer rates
- UK inflation hits 2%
- French Banks under pressure
- Summary
Seizing opportunities amid higher for longer rates
Article by Hugh Gimber in Investment Week
The growth outlook remains strong, but geography is important
- At the start of this year, market pricing suggested that investors were anticipating a combination of robust global growth, declining inflation, and rapid rate cuts.
- While resilient growth has supported risk assets, stubborn inflation has pushed bond yields higher (and valuations lower) as government bond investors have had to scale back their expectations for lower rates.
Continues…
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