It has been another quiet week in capital markets, which may be a surprise given the political shouting about the General Election. As we have written before, the recent rally in risk assets is at odds with the still slowing global economy, leaving many uneasy about potentially overvalued asset prices. For the moment, investors seem to be pondering where to go next. Bond markets have calmed down after a couple of weeks of volatility. Equities continue to edge higher and, in the US, have moved up to valuations not seen since the end of 2017 – when talk of ‘irrational exuberance’ was rife. This time around, markets are definitely getting ahead of the economy – investors are placing a lot of faith in global production and profits turning.
Some context. There is an adage that markets have just two emotions: fear and greed. These bouts of pessimism and optimism tend to come in waves that characterise broad market moves. The biggest swings in price happen when the overall mood is changing – as has been the case over the past eight weeks.
Tatton Asset Management PLC (LON:TAM) offers a range of services to directly authorised financial advisers in the United Kingdom. The Company provides on-platform portfolio management, regulatory, compliance, and business consulting services.