Published by Kauders Portfolio Management, Authorised and regulated by the Financial Services Authority
Opinions and statistics are valid at time of publication but may differ later. We leave them on the site so that you can see how useful our point of view has been.
Another half per cent off US interest rates, another one day wonder in stock markets. Next week will bring reality, with the discovery that lower interest rates are no longer automatic good news.
What you saw in the reaction to the Fed's announcement on Wednesday was a perfect example of headless chicken behaviour. It provides a perfect selling opportunity for anyone left holding the equity baby. Take advantage of it now.
Lower interest rates are part and parcel of deflation. As we know from Japan, deflation is bad for equity investment but good for Government securities. The evidence is there, applicable to the West, yet ignored by too many.
You are welcome to quote or re-use this material, provided you acknowledge the source "www.contraryview.co.uk, published by Kauders Portfolio Management".
Return to home page of contrary view or return to complete index
For information about our advice and services visit our main site or click for contact details
WARNING: The firm can only be responsible for action taken on our advice given personally and specifically to be suitable for each individual. Statements on this site do not, on their own, constitute advice. Please note that UK regulatory requirements prevent us commenting on your existing investments or giving specific advice, unless you first sign one of our portfolio service agreements.
This advertisement has been approved by Kauders Portfolio Management, who are authorised and regulated by the Financial Services Authority in the conduct of investment business in the UK. Opinions and statistics are valid at time of publication but may differ later. We leave them on the site so that you can see how useful our point of view has been.
© Kauders Portfolio Management 2001