Bill Blain: When There Is Too Much Cash around the Market Can Remain Irrational for Longer…

One of the key factors driving stocks higher in the wake of a trade “accommodation” rather than a peace treaty is momentum – markets want to go higher, anticipating growth. But the market is equally driven by the volume of cash ready to be thrown at it.  There is no shortage of ready liquidity - in this sense of too much easy money chasing too few assets, rather than liquidity: “who wants to buy this” conundrum.

Stock Prices Are Plunging, and Many Fear This Could Be Another “Black October” for the Stock Market

Today, we are facing a global economic slowdown, an impeachment crisis in Washington and a rapidly escalating trade war simultaneously, and it seems like almost everyone on Wall Street is suddenly talking about “the coming recession”.  In such an environment, any piece of bad news is going to push stocks lower, and that is certainly what happened on Wednesday…

Why Does the Federal Reserve Keep Slamming the Panic Button over and over if Everything Is Okay?

What in the world is the Federal Reserve doing?  For months the Fed has been trying to publicly convince us that the U.S. economy is “strong”, and Fed Chair Jerome Powell recently unequivocally stated that “the Federal Reserve is not currently forecasting a recession”, but the Fed’s actions tell a completely different story. 

We Want Our Country Back

I had always thought that Gracie Fields’ great wartime song, ‘Wish me luck as you wave me goodbye,’ was written with the departing troops in mind, but it was actually sung by Gracie Fields in the 1939 film ‘Shipyard Sally’ to accompany her departure from Glasgow to present a petition from the men of the Clyde to the owners in London who wanted to close their shipyards. The film opens with Queen Mary launching The Queen Mary to the tune of ‘Rule Britannia’ and closes with Gracie Fields singing ‘Land of Hope and Glory’ superimposed on ships sliding down the slipways. Some…

Scrapyard Britain

British Steel, our second largest steelmaker, is to be liquidated following the failure of rescue talks between the government and Greybull, the American private equity firm that manages it. The government would not provide the £30 million loan needed to tide it over (no way of getting round those EU state aid rules, we are told, and since we are to stay in the EU, we must play by the rules) as orders have slumped in the wake of Brexit uncertainty and customer concerns over possible tariffs. 5,000 skilled jobs are at risk, a further 20,000 in the supply chain. Scunthorpe will…

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