David Thornton explains why employee share ownership schemes are a strong signal for investors to snap up the shares.
The post Buy into companies with employee share ownership schemes was first published on MoneyWeek.
The supply of luxury properties in the capital has found its own ways of meeting demand, says Merryn Somerset Webb. That can only mean one thing for property prices.
The post London house prices: how demand has created its own supply was first published on MoneyWeek.
Jack Nicholson may have swapped the LSD for milk, but he still has his money.
London property prices have reached ludicrous heights. Dr Matthew Partridge looks at what could pop the bubble, and how far prices could fall.
The post The oil price crash and European QE will pop London’s property bubble was first published on MoneyWeek.
The FTSE 100 shrugged off the win for the anti-austerity party, Syriza, in Greece to climb 19 points higher to 6,852.
The post Markets: FTSE shrugs off the Greek election result was first published on MoneyWeek.
Students at the London School of Economics occupied the University of London Union building on this day in 1969, in protest at the erection of new security gates.
Contrary to received opinion, central bankers can’t fix the world’s problems. John C Burford explains why Mario Draghi is no exception.
Just like Winnie-the-Pooh, the eurozone is going to have to go on a diet to get itself out of the hole it's stuck in, says Merryn Somerset Webb.
The post A lesson from Winnie-the-Pooh for a Europe that’s gorging on ECB honey was first published on MoneyWeek.
The Greek debt problem is well known. What isn't so well known, says Bengt Saelensminde, is that the UK is in just as deep a hole as Greece.
The post Without serious change, Britain is on course for a Greek-style debt bomb was first published on MoneyWeek.
The economy is improving, a but the amount of personal income tax raised isn’t rising. One reason is the sheer size of the black economy, says Merryn Somerset Webb.
The post Why we’re collecting less income tax – the rise of the black economy was first published on MoneyWeek.
Asian banks turn away millions of customers every year. Lars Henriksson explains how that's created a lucrative market for investors.
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It's easy to stereoptype Greeks as lazy freeloaders But this chart shows just how much they've had to put up with, and why they voted for Syriza.
The post The real reason Syriza won power – in one simple chart was first published on MoneyWeek.
The Rolls-Royce Ghost has just got even better.
The victory in Greece of far-left, anti-austerity party Syriza sends a clear message to Europe. John Stepek looks at what happens now, and what it means for you.
The post Greece tells Europe to shove austerity: here’s what it means for you was first published on MoneyWeek.
ECB money-printing and positive economic data pushed markets to more gains on Friday. The FTSE 100 closed up 0.5% at 6,832, its highest since September last year.
On this day in 1808, the New South Wales Corps led by Major George Johnson carried out the only forceful takeover of power in Australian history.
Alexis Tsipras is leading in the polls, but he's made some big promises to voters. Kam Patel explains what you need to know ahead of the Greek election.
The post The Greek election: what to watch out for and what it means for you was first published on MoneyWeek.
Elliott wave and Fibonacci theories both point to a trend change in the gold price charts. John C Burford explains.
Investment trusts are quickly becoming one of the best ways to get income in today’s market. Bengt Saelensminde explains why.
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Lots of small businesses are fed up with being paid late. David C Stevenson looks at the innovators that have come to put an end to it.
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Enjoy the beaches and magnificent Central American rainforests with minimal cost to the environment.
Saudi Arabia’s King Abdullah has died. Dr Matthew Partridge looks at what this means for the region and the oil market.
The post What the death of King Abdullah means for the price of oil was first published on MoneyWeek.
Money-printing will make Europeans worse off, if America is anything to go by, says Bill Bonner.
Money belonging to Alpari's clients is currently trapped in the firm. Cris Sholto Heaton looks at the rules for getting your money back.
From the school run to getting back from the pub, driverless cars will completely change the way we live, says Matthew Lynn.
The post Five ways driverless cars will turn the economy upside down was first published on MoneyWeek.
From a townhouse in York to a Grade II-listed property in Hertfordshire designed by the architects of Letchworth Garden City.
Professional investor Richard Titherington tips three income stocks to profit from emerging-market volatility.
Even this well-run business has been tainted by the gloom in the oil industry, says Phil Oakley. But it's still worth keeping an eye on.
Investors lost millions when Magnus Peterson's sham hedge fund spectacularly blew up. Now, after nearly getting away, they have justice.
The post Magnus Peterson: The charismatic Swedish trader now facing years behind bars was first published on MoneyWeek.
Please don't move up North. It is terrible here. All we have is horrible Victorian city centres, empty beaches, National Parks and long distance footpaths. It rains all the time and you can't see for puffins and guillemots pooing all over you. The people are horrible, they try to say hello all the time and are forever asking you if you are all right. Don't come. Please.
Everyone I know with an economics degree has predicted a London property crash over the last decade or so and has been wrong it might happen one day but nobody knows anything really
How many are really going to repatriate money in bad times?
London's okay, and many Londoners dear and uncomplicated little souls, but I would urge you not to write any more articles that may cause them up sticks and head up here in any great numbers and spoil things for the rest of us.
Bubble markets surely have to have lots of people piling in to create the 'rise' of a bubble - but the London's prime market doesn't; it's always been a low volume one? At the moment there are a shrinking number of buyers, some sellers but nothing going on - and the vendors are rich enough not to have to worry about dropping their price to get a sale; they are usually second or third homes. It would only 'burst' if sellers then had to drop their pants to get a sale.
Always enjoy reading John's trading article. What I find though is there's no evidence that any trades are ever made, no entry prices or stops given. It s fine to say so much profit was made in retrospect or a top or bottom in the market correctly identified but without trading evidence this means nothing. I appreciate John is not a free trading service (although his courses must make money) but how about John joining a social trading site so that we can see his profitability or join in? If he makes the profits he says he does then his status and ability to charge for his tuition would increase. Otherwise, it may be nice to read his views, but that's it!
How can you say that a market is too small to burst?!
It is precisely that mentality that causes bubbles. If it can go up quickly it can come down even faster.
FYI - low volume in a market makes price moves more volatile.
The big difference is that the UK economy is based on a level of confidence that the Greeks were never able to match.
If you are able to create a figure that everyone agrees is comforting and can be the proof used to justify when people ask for facts! Its a mind numbing cycle of falsehood, that nobody questions, so nobody is responsible for the wheels of the gravy train, should they magically disappear!
For instance, the recent addition of prostitution and drugs to the national account boosted GDP figures by 4%! That is money that the government can't tax, because its criminal money - but its value can be used to make sure the UK looks to be economically successful!
It should end in tears, but it won't! ;-)
fundamentally it is not hard to argue that London property is seriously overvalued but if there is to be a proper correction or even a crash sellers need to be forced to sell - and that can really only come in a scenario where interest rates become unaffordable.
The property market in central London is too small to 'burst' and I would say 20% is an exaggeration egged on by agents wanting to get headlines with press releases. The London central prime property market above £10m is dead, not burst - no one is buying or selling and agents report a market on life support; you are correct in that the Russians and other wealthy buyers are staying away for the reasons you give. But you forget that property is not liquid - so prices don't flatline they just don't exist until the market picks up again. It's not like the general markets where some 1.1 million homes are sold every year (in a good one) and instead the sales in London are counted in thousands, sometimes only a few.
But deflation is not just falling prices for sofas, its banks failing, companies failing, bankruptcy everywhere, homeless, crime, more like Greece than Wiltshire.
So where do you park your cash?
What nonsense. One could just as well argue that as the Russian economy is collapsing and the Euro is being deliberately devalued against Sterling, the rush to buy properties in London and some parts of the UK is ever growing. Property is like gold for these investors. They just want to be safe and know it is there even if they do not use it and they do not get a return on it. I live in Cobham, Surrey. When I go to the local Waitrose, I am likely to hear about 5 different languages, not including the Bulgarian Big Issue seller. The move is strong and lots of these are families with children that go to school here. The rest of their wider family's will follow in the coming years. If your outlook is that the is a possibility that your wealth will be destroyed by some idiot ideas or people like Putin, Brussels or Greeks, you would run for cover, i.e. a safe life in the UK.
They 'need' cruises. :-) :-)
If, like GATA, you believe there is widespread manipulation by central banks in the gold market to keep prices low to discourage people from owning gold and hide the true impact of QE - and - the cost of keep a gold mine open to keep up the production of gold is in the region of $1200 an ounce then, for central banks to continue to quietly continue to fill their vaults (or in the case of the FED, replace other countries gold they sold) - we should be able to call $1200 the 'floor'. Some believe the cost of producing an ounce of gold is substantially more.
Agreed. Is it 20% of debt that is issued by the Treasury and owned by the CB? These cancel out. Then there are all the distressed assets (not just LLoyds, RBS) bought, and loans made, in the first round of money printing. Are these revalued? If anyone has these numbers to hand, we might understand the true nature of the "debt explosion" since 2008.
Monetary policy has misallocated resources across the board in Greece, the UK and virtually everywhere else. Almost everyone is speculating, moving money around London property, Forex, equities - as central banks attempt to corral people into buying and borrowing to support the banks and the individual states. Huge numbers of people remain unemployed because of dysfunctional monetary and fiscal policies. They all have skills to barter with and the time to produce or perform the tasks and their skills are often in demand. The work is there but our dysfunctional money system has created a bottleneck that forces ‘unemployment’ on one side and ‘need’ on the other. However, government wouldn’t easily get their cut and banks would not be able to monetise, or leverage, their ‘work’, if we were to look for a system that properly utilised peoples talents. The problem of debt goes right to the heart of what we regard as ‘money’ and how we use it.
Well in the world I know, and I know the views of many movers and shakers like me, this is just another disincentive. And if I did invest in Scotland what is the next blow they'll think up for me? Sorry but no.
Why the insult and the aggression ? IMO John is absolutely right, in the fullness of time economic reality always prevails and that reality will reflect itself in all areas even the absurd stock markets. Sure timing is always an unknown, so yes John is showing a strong degree of personal conviction, not a crime though is it ?
You will be better of doing some reading yourself, on how the blockchain is protected and how are miners incentivized to do so. It is not a debate which I am interested in.
Anglophile countries in general have adopted Keynesian voodoo economics for over a century resulting in ever growing consumption debt. Is it not silly to assume that this can go on forever.
Analysts of all hues are of the opinion that a Greek default is remote and even if it happens will not be a threat to the financial industry. They should be gently reminded about what happened to the EUR/CHF peg. The repercussions of which are fully yet to unfold.
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There are so many economic forecasters who say different things and who contradict each other that it is a waste of time trying to understand what will happen in the future.The most bizarre predictions can be found on the website "Economy and Markets" : 3,500 for the Dow, $10 a barrel for oil, and $300 an ounce for gold! Another pundit predicts 31,000 for the Dow within 2 years and $7,000 an ounce for gold! Two years ago Tim Price predicted a complete collapse of the pound, which has yet to happen, but now he says that it is the euro which is heading for collapse.
Others predict "The demise of the dollar"! Many pundits predict a market crash, which may, or may not happen. Others say that the Eurozone will break up, others insist that that this is impossible and it is not going to happen. Then there is the question of the "Black Swan" events that no expert economist predicted - the LTCM debacle of 1998, the dot-com crash of 2000, the housing crash of 2007 and the banking collapse of 2008. We live in a world of total uncertainty and all we know is that there will be another "Black Swan" event sometime in the future, but nobody knows what or when it will be.
Nobody, but nobody forecast the price oil this year at $45 a barrel, or the collapse of the Russian rouble. Mike Larsen of "Money and Markets" reckons that the euro is now wildly oversold and is due to recover. Others expect the euro to fall to parity with the dollar! The dismal science indeed!
So, let me get this right.. countries are effectively lending themselves money? Sounds very sensible.
I broadly agree, as does Grant Williams and others.
The US has passed the QE baton to Japan and then the ECB. Don't be suprised if the US are once again printing money in the medium term.
Why? Mr Burford calls it a negative social mood. I would agree and expand - it is too much debt held by individuals (now increasing again), corporates and sovereign governments. As such, there is no consumer confidence.
All those parties need low rates, indefinately.
None are as blind as those that will not see.
Printing more money has never worked in history and it will not work now.
The money never enters the general circulation but its effect damages us all
- inflation !
The only difference is, history concerns the forgotten, this concerns us ,
here and now. We only listen to what we want to hear, I am very surprised that
John has the guts to speak out....well done for taking the
A brave position, not liked or welcome by most , but it is the truth !
Time for a major reset of world currencies and time to re-evaluate societies
and governments position on sound financial planning and direction.
I too, am no seer into the future but now we are the history makers and
history will not judge this period kindly....the events will be remembered but
the little players forgotten...
Welcome to the fool’s paradise....
How does mining 'secure' the network?
[It's a question not an objection]
Why is randomly assigned coin 'stupid'?
[another question...not attack]
As far as timing goes he's pretty much said sometime 2015 for a crash --that's a pretty big window as far as placing a bet goes, but I admire the fact he's pinned his colours to the mast.
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