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Walker Crips' Market Commentary

Insights on the world of stock markets and finance

This weekly podcast from the team at Walker Crips Investment Management provides an in depth commentary on the macro economic factors driving global markets, whilst also focusing on individual stocks that are making head
Latest Episode12/7/2021

Are equity markets entering a new phase?

Season 1, Ep. 11
Markets were pulled from pillar to post as the forces of Covid and inflation gave battle to investor enthusiasm for buying the dips. Federal Reserve Chairman Powell tempted fate early in the week by announcing an acceleration in the Fed's plan to wind down its $120 billion-a-month asset purchases, when investors were expecting his tone to have softened in the face of the Omicron variant. In the space of a few weeks the Fed has gone from dismissing inflation as being "transitory" to inflation being its main concern. Powell even refused to admit that an Omicron-induced lockdown would reduce inflationary pressures, saying that it merely "increased uncertainty for inflation". As a result, investors now face a hitherto unanticipated scenario where new lockdowns depress growth but, unlike over the past fifteen years, monetary policy actually becomes more rigid.Stocks featured:AstraZeneca, Didi Global, Hermes International, Moderna, Pfizer and Universal Music GroupTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
12/7/2021

Are equity markets entering a new phase?

Season 1, Ep. 11
Markets were pulled from pillar to post as the forces of Covid and inflation gave battle to investor enthusiasm for buying the dips. Federal Reserve Chairman Powell tempted fate early in the week by announcing an acceleration in the Fed's plan to wind down its $120 billion-a-month asset purchases, when investors were expecting his tone to have softened in the face of the Omicron variant. In the space of a few weeks the Fed has gone from dismissing inflation as being "transitory" to inflation being its main concern. Powell even refused to admit that an Omicron-induced lockdown would reduce inflationary pressures, saying that it merely "increased uncertainty for inflation". As a result, investors now face a hitherto unanticipated scenario where new lockdowns depress growth but, unlike over the past fifteen years, monetary policy actually becomes more rigid.Stocks featured:AstraZeneca, Didi Global, Hermes International, Moderna, Pfizer and Universal Music GroupTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
11/30/2021

Omicron variant sparks worst daily declines in over a year

Season 1, Ep. 10
Stock market volumes were already thin when news emerged of the Omicron variant, on account of the Thanksgiving holiday in America, exacerbating the sell-off and causing the worst daily decline in more than a year. The European blue-chip Euro Stoxx 50 index fell back to earth with a thud, falling 4% in a day, though the real wonder was how it had kept rising at all given recent European Covid statistics. Having enjoyed a 10% run-up in recent weeks, this index is now back at the levels seen in June. It was a similar story with most stock market indices globally, which gave up several months of gains in a day. The Nikkei continued on its remarkable roller coaster ride, dropping 6% to levels last seen in January. Over the past few months, it has enjoyed a 14% rally, followed by a 9% fall, followed by an 8% rally and now this latest decline, as hopes for the new government’s stimulus programme have fought it out with disappointing economic data. The technology-heavy Nasdaq Composite index again bucked the trend, and had made back most of its losses by the end of the week, as investors anticipated another pandemic bonanza for online businesses.Stocks featured:Bank of America Corp., DiDi Global Inc., Alphabet Inc., Moderna Inc., Pfizer Inc. and Uber Technologies Inc.To find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
11/23/2021

Nasdaq Composite index reaches all-time high

Season 1, Ep. 9
Following hot on the heels of last week’s rampant inflation data, US Federal Reserve governors were queuing up to signal a faster withdrawal from the Fed’s $120 billion a month bond-buying programme. The constant drumbeat from one governor after another, including the Fed’s vice-chairman, took a little of the shine off US stocks but ensures that no investor will be surprised when the news is formally announced. The Dow Jones Industrial Average joined the FTSE 100 in being down on the week, and both have fallen about 2% from their recent highs. The technology heavy Nasdaq Composite index has been going in the opposite direction, however...Stocks featured:China Telecom CorporationCisco SystemsInPostMacy'sMerck & Co.PfizerRivian AutomotiveWalmartTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
11/16/2021

Is the age of the conglomerate over?

Season 1, Ep. 8
Bond markets remained in a feverish state last week, after inflation data again suggested that central bankers are wrong about the risk of rising inflation. US inflation rose to 6.2% in October, its highest level in 30 years. One has to go back to the inflationary era of the 1970s and early 1980s to find a period when inflation was consistently above its current levels. With the prices of cars, rent, furnishings, hospital services and recreation all rampant, it is likely to be at least several months before US inflation recedes. And that forecast relies on a resolution of the many issues dogging supply chains. All these factors increase the risk that consumers begin to anticipate higher inflation, bringing purchases forwards and demanding higher wages to compensate. Few economic forecasters have this as their most likely scenario yet, but several are highlighting the risk.Stocks featured:General Electric Company, Johnson & Johnson, Marks & Spencer Group, Rivian Automotive Inc, Tencent Holdings and Toshiba CorpTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
11/9/2021

Equities continue their amazing streak

Season 1, Ep. 7
It has become quite common this year for stock markets to reach new all-time highs, and to do so without significant corrections along the way. This pattern was very much in evidence last week, as equities continued their amazing streak following October’s blip. The S&P 500 index rose to an all-time high for the seventh day in a row, and has broken so many records for undiluted optimism this year that market commentators have mostly given up highlighting them. Continental European stock markets were just as bullish, with the benchmark Euro Stoxx 50 index reaching new post-credit crunch highs for seven straight days. While most equity indices in the developed world have fared well over the past month, some have been more equal than others: UK equities have risen, but still significantly lag their pre-pandemic levels. The US stock market is now close to its all-time high in relative performance against the UK, and is trading at a 40% valuation premium, while European stock markets are trading at a 20% premium to the UK, a new post-referendum high.Stocks featured:Airbnb, Berkeley Group, Moderna, Peloton Interactive, Taylor Wimpey and TeslaTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
11/2/2021

Credibility of central bankers teetering on the brink

Season 1, Ep. 6
Having been a seismic event in capital markets, we should not be surprised that the pandemic continues to deliver aftershocks. It was the turn of bond markets last week, with gut-wrenching rises in interest rate expectations all around the world. Such was the unstoppable momentum that, at one point, investors were able to observe - in real time - the President of the European Central Bank explaining at length why the ECB would not be raising rates anytime soon while, simultaneously, Eurozone bond yields rocketed into orbit. It was like a visit to the Hall of Mirrors.Stocks featured:Amazon, Apple, BBVA, BNP Paribas, Ford Motor Co, Nomura and Volvo CarsTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
10/26/2021

Persistent inflation becoming an inconvenient truth

Season 1, Ep. 5
Investors continued to look on the bright side last week but, with persistent inflation becoming an inconvenient truth, it's more the case that every silver lining is now accompanied by a cloud. A new all-time high for the US stock market was only momentarily punctured after the US central bank's Chairman Powell admitted he had been wrong about inflation. "The risks are clearly now to longer and more persistent bottlenecks, and thus to higher inflation" he said and, though he declined to change policy guidance, the change in tone is clear. Bond markets had already arrived at this conclusion, and have been bidding up the prospects for early rate rises for several weeks.Stocks featured:Alcoa, Apple, Facebook, Intel Corp and Trump Media & Technology GroupTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.