With the general election less than a week away, it's hard to think of much else. And as an investor, it makes sense to care about the outcome. It's tempting to be cynical about politicians, particularly when they're spouting blatant new electoral bribes on a daily basis. But don't be fooled into thinking that you don't have a real choice here. There are very clear differences between both the policies and the overall philosophies of the main parties, and the smaller parties who are likely to be supporting them in the next parliament.
We looked at how the policies they've revealed so far (I imagine we'll get more last-ditch bribes in the days to come) are likely to impact on your investments and your finances. But the short version is that, whoever gets in, it's going to have a meaningful impact on your wealth. So ignore the likes of Russell Brand and get out there and use your vote.
That said, there's a lot more for investors to worry about than the results of an election in one small part of the global economy. For one thing, stockmarkets around the world are getting more and more expensive by the day.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The US is in the lead on this front, with the tech-heavy Nasdaq index finally poking its head back above the record high it set back in 1999. But beyond the most reviled markets Russia and Greece, for example it's hard to point to anything as being wonderfully cheap.
We still like eurozone markets like Italy, and our old favourite Japan, and even China is appealing despite the growing mania for leveraged betting among local investors. But it's an increasingly frustrating time to be a value investor, as our regular columnist Tim Price notes in his recent interview with Merryn Somerset Webb.
Even David C Stevenson normally MoneyWeek's token bull is getting a little bit worried about potential turbulence in global market. He's gone as far as to look at various ways to short the FTSE 100.
But at least shares are trading within the bounds of normality, if somewhat nearer the upper end than we'd like. There's a much scarier phenomenon out there in asset markets the bond bubble. As Jeremy Warner notes in The Daily Telegraph, almost a third of all eurozone government debt now trades on negative yields. This is simply unprecedented.
We'll have more on what it means from the MacroStrategy Partership's James Ferguson in the next issue don't miss it. But in the meantime, the risk of a bursting bubble in the world's biggest asset market means at least one thing you should keep a bit of gold, one of the few assets not hitting record highs, in your portfolio too.
Next week's issue is out on election day so Thursday 7 May, not Friday 8 May. Normal service resumes the following week.
-
Inflation may be slipping but there is still plenty of misery aheadEditor's letter Inflation may be a little lower than last month as the prices of petrol and diesel fall back, but it remains structural and long-term, says Merryn Somerset Webb. And there are no painless solutions.
-
Beat the cost of living crisis – go on holidayEditor's letter As inflation rages, energy bills soar and the pound tanks, what’s a good way to save money this winter? Go on holiday, says Merryn Somerset Webb.
-
How capitalism has been undermined by poor governanceEditor's letter Capitalism’s “ruthless efficiency” has been undermined by poor governance, a lack of competition and central banks’ over-enthusiastic money printing, says Andrew Van Sickle.
-
Don't be scared by economic forecastingEditor's letter The Bank of England warned last week the UK will tip into recession this year. But predictions about stockmarkets, earnings or macroeconomic trends can be safely ignored, says Andrew Van Sickle.
-
The biggest change in the last 17 years – the death of the “Greenspan put”Editor's letter Since I joined MoneyWeek 17 years ago, says John Stepek, we’ve seen a global financial crisis, a eurozone sovereign debt crisis , several Chinese growth scares, a global pandemic, and a land war in Europe. But the biggest change is the death of the “Greenspan put”.
-
The wolf returns to the eurozone’s doorEditor's letter The eurozone’s intrinsic flaws have been exposed again as investors’ fears about Italy’s ability to pay its debt sends bond yields soaring.
-
Things won't just return to normal – that's not how inflation worksEditor's letter You might think that, if inflation is indeed “transitory”, we just need to wait and everything will return to “normal”. But this is a grave misunderstanding of how inflation works, says John Stepek.
-
The public may have reached its limit for tax risesEditor's letter The UK tax burden is now at a 70-year high. And, while there may be some reason to hold off on cuts right now, taxes are too high because the state tries to do too much. Perhaps it should do less, says Merryn Somerset Webb.
