How the shadow economy moves markets

Exchanges taking place under the official radar may seem harmless, but they can have big effects on the wider economy. Investors should pay attention, says Jonathan Compton.

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The more widespread this kind of thing, the lower the multiple
(Image credit: Credit: Andriy Blokhin / Alamy Stock Photo)

A family lunch on the terrace at a mahogany table with fresh fish and excellent wine. In the distance a combine harvester gathers in the crop, while nearby the gardener, window cleaner and maid bustle about; the carers look after my old father and the nannies take care of my grandchildren. There is new tarmac on the drive, a new lick of paint on the outbuildings and our eggs and vegetables are selling well.

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Jonathan Compton was MD at Bedlam Asset Management and has spent 30 years in fund management, stockbroking and corporate finance.