Italy used to be able to gain breathing space by letting its currency depreciate. Now that it’s part of the single currency, it can’t.
Articles written by Andrew Van Sickle
There has been a remarkable shift towards bullishness since Donald Trump’s victory in the US presidential election.
Bond markets have borne the brunt of the Trump victory amid a jump in inflation expectations and high valuations. The worst falls have been in long-dated government bonds.
Donald Trump’s election victory has pushed the US dollar higher – something that could last for at least the next few months, says Andrew Van Sickle.
Oil prices have ticked up as Opec, the oil exporters’ cartel, launched a renewed attempt to cut output and reduce a glut. But Opec countries are notorious for failing to stick to agreements.
Gold jumped by more than 5% on the news of a Trump victory. Then promptly sank to a six-month low. But markets may soon remember why gold is seen as a safe haven and store of value.
The Russian market appears to have turned the corner, with the rouble-denominated Micex index up by 11% this year.
The magazine cover indicator is supposed to be a contrarian signal, says The Economist – something that would seem to apply to its own covers.
All the ingredients for good growth are in place in India: the budget deficit has shrunk, inflation is down, and there has been a massive simplification of the tax system.
Today, thanks to central banks showering markets with liquidity, pretty much everything is expensive. But investors in stocks should not despair entirely.