In the list of things to worry about, especially those on which you can have absolute influence, Trump as president again ranks high for many. For many reasons, and perhaps his likely effect on markets and hence your investments is lower in the rankings than, say, global nuclear apocalypse. However, it is a consideration, particularly as the US stock and bond markets are a, if not the major determinant of the direction of most others. So it’s comforting to hear that they’re currently not that worried, and the things that might worry them are not those that you might expect. Trade war with China? Could be good for everyone else’s industries and worse for China than the rest of us. Inflation and interest rates? Biden’s big spending has driven many of the rises of recent years. Wars and geopolitical events? In recent years, only proven to be bad for markets if bad for the oil price and shipping routes. So, win win? Wouldn’t go that far, and not sure quite how half-full my personal glass of rosé is on this one, I’m afraid.
“UK slips into recession as economy contracts 0.1% in December”
This week’s big economic and bad election news is that we are, or certainly have been, officially in a recession. You may not have thought you were, or you may have thought you have been for some time, as we and its effects are all different.
