Market wrestling For weeks we have been talking of an equity market that is relatively expensive in comparison to bond markets, especially government bond markets. Below is a chart which tracks the dividend yield of the FTSE 100 (calculated from 12-month trailing...

  

Mood swings For some time, bond and equity markets have been experiencing teenager-like mood swings. As February ended and March began, government bond yields continued their march higher to levels last seen last autumn, when stock markets tumbled as a result. Yet,...

Balancing acts Last week saw global stock markets give back a portion of the gains made in the first few days of February. Still, since the start of the year, global stocks have made a total return of around 5% in £-sterling terms (Source: Bloomberg). Over the past...

A dose of realism creeps in Last week, the UK’s leading stock market index, the FTSE 100, finally passed the psychologically important threshold of 8,000. And yet, after the strong start to the year in January, February has brought consolidation rather than a...

A challenging week brings investors back down to earth Overall, UK bond and equity markets slipped back last week, despite the FTSE 100 edging higher until Thursday lunchtime when it reached a new all-time price high. Since the previous week’s US employment data, the...

Are central banks transforming from hawks into doves? Last week was like the other four weeks of 2023: dominated by central bank action, inflation, and despondency over the UK economy. Meanwhile, stock and bond markets stayed buoyant. The monthly US jobs report was a...



Goldilocks in the air Recent macroeconomic data releases across the western world report declining rates of inflation and no longer overheating (but nevertheless still positive) economic growth. In the US, the important milestone of the rate of personal consumption...

Slowing growth throws markets into a bind Last Monday we wrote that markets were rising because bad economic news was good news in terms of lessening concerns over interest rate rises, beyond what is already expected and therefore priced in. Last week, various...

Football fever saves UK from recession The new year is proving to be a happy one for almost all asset classes and regions. The FTSE 100’s intraday all-time high of 7903.50 was less than 100 points away on Friday, and we were closer than we were the previous week. The...

January surprises “Welcome to 2023” said the note on the restaurant door. The door was shut, the lights were off, and another note explained that rail strikes meant staff and customers were unable to get there. All the venues in this City-of-London street were closed...

Fed up before Christmas As the year comes to a close, some of the year’s big trends have showed signs of stopping or even reversing. Are the current market moves really down to the market’s concerns about interest rate policy? This year has been tumultuous in market...

Not so bad? Almost good December has begun on a positive footing for investors. A renewed pivot in sentiment, with market participants choosing to focus on the positives rather than the negatives, has brought the third extended market upswing of 2022, with various...

The Cambridge Weekly – 28th November 2022 Markets give thanks The last week of November is generally a quiet one for markets. Many professional investors head back to family homes in the days before Thanksgiving and will have already closed down their risk positions...

Plugging the holes The Autumn Statement, budget-in-all-but-name, had been signposted as very likely to bring bad news to UK taxpayers, as the third Conservative government of this parliament changed course from Trussonomics back to Rishinomics. As we had suspected in...



Signs of ‘peak inflation’ emboldens markets There were three big market-moving stories last week: the US midterm elections, the latest crash in the surreal world of crypto currencies, and the release of US inflation data for October. By last Friday, it was the...

Diverging paths accompanied by seasonally scary messages Considering the gloomy news last week from central banks in the US and UK, investors enjoyed a decent enough start to November. Following on from the rebound over the second half of October, it has been welcome...