Sainsbury’s (LON:SBRY) has a rather strange growth strategy, given the outlook for the UK economy. Its purchase of Home Retail Group mans that it is becoming less defensive and more cyclical at a time when real disposable incomes seem certain to come under pressure. A mix of higher inflation and uncertainty regarding the economic outlook…
December’s Halifax House Price Index showed that house prices rose by just 0.2% in the last month. This gives a quarterly change of 0.8%, with the report warning that “house price growth may slow over the coming months”. That’s not surprising. Uncertainty surrounding Brexit, affordability issues and the potential for high inflation are all likely…
Looking ahead to 2017, it feels as though there are a number of major risks facing investors. In fact, it is difficult to think of a more uncertain time since the credit crunch. The ‘no’ vote in the Italian referendum is but the latest challenge facing investors. Depending on who succeeds the now former Prime…
It’s easy to look at Brexit and come to the conclusion that it will be bad for all UK-focused companies. After all, it brings uncertainty, change and a potentially negative impact on the UK’s overall economic performance. However, as with any situation, there will be winners and losers. Some companies will see their sales and…
For most investors, it’s been a case of ‘so far, so good’ since the EU referendum. The only real impact of the result to leave the EU has been a weaker pound, which has benefited exporters and put pressure on importers. However, Brexit has not yet begun. Things could therefore get much, much worse for…
In the days following the EU referendum, UK commercial property was the last thing investors wanted to hold. Various funds were suspended, commercial property stocks recorded vast share price falls and it seemed as though the sector was in for a rough ride. However, since then a looser monetary policy, weaker sterling and improved confidence…
Perhaps the most surprising price movement since the US election has been that of gold. Following a spike to $1,321 per ounce on election night, the precious metal has fallen back to around $1,220 per ounce. That’s surprising because Donald Trump’s election win brings a high degree of uncertainty. He plans to implement major economic,…
Donald Trump’s Presidency could be great news for defence companies such as BAE Systems (LON:BA.). He is apparently seeking to provide peace through strength. In other words, Trump may desire a larger, more powerful and better-equipped US military in order to deter threats from abroad. Further, he is seeking to rebalance military spending within NATO.…
The reaction to Donald Trump’s election victory has been surprising. First, stock markets sank. Then they rose. Now at the time of writing they are falling once more. Clearly, the only thing that investors can be certain of is that uncertainty will be high over the short to medium term. Part of the reason for…
In recent years, we have become used to a low level of inflation. However, since the EU referendum the economic landscape has changed and a higher level of inflation is likely in future years. In fact, since the referendum, inflation has risen from 0.3% to 1% and the Bank of England now forecasts that it…
