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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 Episode5/10/2022

S&P 500 records fifth consecutive week of negative performance

Season 1, Ep. 30
Summary:The past week saw the US Federal Reserve (Fed) do exactly as markets expected as it increased its benchmark interest rate by 50 basis points (to a range of 0.75% - 1.0%), constituting the biggest single increase in US borrowing costs since the year 2000. The Fed also announced plans to reduce its gargantuan $9 trillion balance sheet. In June, July and August, The Central Bank plans to reduce its stock of Treasury Securities and Mortgage Backed Securities by a combined total of $47.5 billion per month, then from September onward by a combined total of $95 billion per month.Stocks featured:Airbnb, Lyft, Shopify, Uber and Under ArmourTo 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.
5/10/2022

S&P 500 records fifth consecutive week of negative performance

Season 1, Ep. 30
Summary:The past week saw the US Federal Reserve (Fed) do exactly as markets expected as it increased its benchmark interest rate by 50 basis points (to a range of 0.75% - 1.0%), constituting the biggest single increase in US borrowing costs since the year 2000. The Fed also announced plans to reduce its gargantuan $9 trillion balance sheet. In June, July and August, The Central Bank plans to reduce its stock of Treasury Securities and Mortgage Backed Securities by a combined total of $47.5 billion per month, then from September onward by a combined total of $95 billion per month.Stocks featured:Airbnb, Lyft, Shopify, Uber and Under ArmourTo 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.
5/3/2022

Stock market volatility back to its post-pandemic peak

Season 1, Ep. 29
Volatility in stock markets was back to its post-pandemic peak last week, with the mighty S&P 500, the world’s largest stockmarket index by value, falling by 2.8% on Tuesday, only to rise by 2.5% on Thursday, before selling off 3.6% on Friday. So much of the value of the S&P 500 is now concentrated in a few technology behemoths that their fate determines its fate. Thursday’s rebound had much to do with unexpectedly strong results from Meta Platforms (formerly Facebook) amongst others, and Friday’s sell-off appeared to have been triggered by disappointing results from Alphabet and Amazon, combined perhaps with the negative outlook expressed by Apple’s management. However, these problems were mainly related to the pandemic’s distortion of supply and demand. Alphabet reported a deterioration in demand from customers in Europe, but this should be seen in the context of a quarter in which Alphabet’s revenues still grew at a 20% rate.Stocks featured:Amazon.com, Apple, Alphabet, Chevron Corporation, Exxon Mobil Corp, Meta Plaforms, Robinhood Markets and TwitterTo 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.
4/26/2022

Another wave of panic in bond markets

Season 1, Ep. 28
A lacklustre week for stock markets was dwarfed by another wave of panic in bond markets, as the US central bank turned up the volume on its inflation-fighting rhetoric. A two-year US government bond now yields about 2.7%, and yields have only been higher than that once since before the Credit Crunch. US government bonds have now had their worst start to a year since the early 1970s. Bond markets crumpled under the onslaught from federal reserve officials: one governor advocated for a rate rise of 0.75% at the next meeting, and several others were heard to endorse the idea of 0.5%. This was subsequently reiterated by the Federal Reserve's Chairman, who also upset markets by describing the American labour market as being "unsustainably hot".Stocks featured:Netflix, Tesla and Walt Disney CoTo 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.
4/12/2022

Soaring fuel prices cause US inflation to hit highest rate for 40 years

Season 1, Ep. 27
Stock markets initially threatened to continue their advance, before retreating to end the week lower. The initial setback was the US Federal Reserve or, more specifically, the written minutes of a Federal Reserve meeting that took place four weeks ago. Such is the scrutiny being applied to the change in interest rates by the Fed that the market was falling even before the minutes were published, and continued to fall afterwards even though they merely confirmed what was telegraphed at the meeting itself. Perhaps investors needed to see it in writing, such is the poor state of the Fed’s credibility. The technology- heavy Nasdaq Composite Index managed to decline by 8% from peak to trough during the week, and most equity indexes around the world followed to different degrees. These market characteristics were reminiscent of the start of the year, when a violent rotation sent growth stocks tumbling and stodgy, value stocks in hitherto unfashionable sectors soaring. The latter description fits the FTSE 100 very nicely, and it managed a 1% gain for the week, supported by banks, oil companies and pharmaceuticals.Stocks featured:Berkshire Hathaway, Hewlett Packard, JD.com, Occidental Petroleum and VolkswagenTo 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.
4/5/2022

European markets face further volatility before inflation subsides

Season 1, Ep. 26
Stock markets largely completed their recovery from the Ukraine-war sell-off last week. However, not all markets are equal,with the very large companies comprising the S&P 500 stock market index and the FTSE 100 comfortably beating theperformance of their continental European peers, and with smaller and mid-sized companies languishing everywhere. In theFar East, Japan’s Nikkei index has fared relatively well, and joins the lucky group of blue-chip indices which are down only a fewpercentage points for the year to date.Stocks featured:Apple, Tesla and TwitterTo 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.
3/29/2022

American technology stock splits greeted with extremely outsized responses

Season 1, Ep. 25
Stock markets continued to enjoy the post-Ukraine rally last week, with notable enthusiasm for all things American and, especially, American technology stocks. Also coming back into favour are some speculative favourites, including cryptocurrencies. Recent announcements of stock splits by American technology companies have been greeted with extremely outsized responses, despite the fact that they generate zero economic value to shareholders. Alphabet (Google) enjoyed a $130 billion boost to its market value on the day of the announcement, Amazon saw an $80 billion boost for its stock split and, most recently, Tesla an $84 billion boost. Perhaps this simply reflects the fact that American retail buyers still have plenty of firepower, as they have been a constant positive for markets since the start of the year, even continuing to pour money in throughout the Ukraine crisis. The other constant positive has been stock buybacks by American companies, which are running at all-time highs. Unfortunately for investors, while these factors may support valuations for a while, neither of them contributes to economic growth or the enlargement of corporate earnings. At least the earnings expectations for technology companies have ticked up recently while, for the broader US market, they have remained flat over the last six months.Stocks featured:Alphabet, Amazon, Apple, Ford Motor Company, Nikola Corp, NVIDIA Corporation 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.
3/22/2022

US markets leap ahead as investors recovered appetite for growth stocks

Season 1, Ep. 24
Stock markets largely completed their recovery from the trauma induced by the conflict in Ukraine last week, and European markets are back to within 5-6% of their pre-war levels. This amount is approximately equal to a year’s return on an equity index, and seems reasonable given the war’s implications for energy consumption and inflation. US markets leapt ahead last week, especially the technology sector, as investors recovered some of their appetite for growth stocks. This also seems reasonable, given America’s distance from the conflict, its relative self-sufficiency in energy and the enormous increase in wealth its citizens have enjoyed during the pandemic. Private sector output in the US is 3.6% above its pre-pandemic level whereas, in the UK for example, it remains 3.5% below. That does not mean that the US is immune to economic wobbles, just that it will probably remain a relative safe haven when compared with other developed-world countries.Stocks featured:Alibaba and Saudi AramcoTo 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.