The banking sector has been hit harder than most industries in the recent market decline. Investors fear that European banks have dangerous amounts of peripheral country debt in their portfolios. European banks have brought down US banks and Morgan Stanley has suffered from this move. During the last month, Morgan Stanley has fallen nearly 40%, and is poised to rebound when the market moves to the higher end of the current range. Continue reading
Today’s unexpected drop in industrial production and manufacturing underscores the weakness of the economy. The UK economy has largely stagnated over the past 9 months. Inflation pressures appear to be easing, but are still elevated.
Short term interest rates continue to remain easy, and the likelihood of the BoE tightening in the near future is waning. Continue reading
The worse than expected US economic data points, that have revealed a soft patch, have countered the better than expected earnings on US equities. Sentiment has changed and pushed gold prices to new all time highs, as investors seek the safe haven status of the yellow metal. Continue reading