2h Wealthcare Investment Conference 2018

NP Crop

Nomi Prins, former Wall Street Banker, White House adviser and author was the key speaker at our investment conference held on 15th May at Stoke Park.

Nomi explained the key Geo-Political events that are currently driving the economy and stockmarkets.  “Central Bank monetary policy of low interest rates and easy money are set to continue for a lot longer than people think.  We are 10 years on from the financial crisis but the emergency measures that were introduced to reflate asset prices are still in place because Central Banks do not want to de-rail the economy or the stockmarket – consequently there is no ‘Plan B’.”

Over 50 guests listened to Nomi explain how Central Banks acted together to provide the necessary liquidity required to save the global banking system from collapsing.  This co-ordinated action was instrumental in restoring confidence and avoiding a 1930’s depression.  The policy was designed to gain time for the regulators to fix the problems and allow the global economy to recover.  Unfortunately the reality is that global debt has continued to increase and stockmarkets have become dependent on low rates.

Steve Wilson, Managing Partner picked up on the theme; “Lots of liquidity and low rates have seen asset prices soar, but wages have been stuck and inflation has remained historically low.  Both the Federal Reserve and the Bank of England have talked about increasing interest rates but the fact is that both of these Central Banks did not put rates up as expected this month amid fears of a slowing global economy and a wave of stockmarket volatility”.

Steve explained that this is not likely to stop longer dated Government Bond yields slowly increasing; “Heightened Geo-Political risks and stronger oil and commodity prices are here to stay – they are pushing up prices elsewhere; the recent dip in inflation is likely to be temporary.  Rising inflation will push long dated bond yields higher.  In the US, 10 year Treasuries have now breached 3% and yields could be 4% within 12 months.  The outlook is bearish for long-dated bonds.”

However, Central Bank monetary policy will continue to be supportive for stockmarkets, as evidenced by the recent strong recovery following market volatility earlier this year.  Steve suggests the best opportunities for equities could be in the UK; “The UK has been the most unloved stockmarket for the past two years but it is now looking good value, particularly stocks such as financials and industrials; as value-seeking international investors turn their attention to the UK we could see strong upside.”

Feedback from some of our guests;

“A hugely informative presentation covering aspects of the financial world not always available to the investors. Thank you Nomi & Steve. Excellent”

“Excellent material, extremely thought provoking”

“Very informative, interesting look at markets and helps to understand”

“Thank You!  These presentations have put many issues into perspective with practical considerations for us all”

We were able to capture the conference by video for anyone wishing to revisit any of the presentations and for those that were unable to attend.
These will be available in the coming weeks.
For further information please contact Steve or a
member of the team on 01494 683100.