Worldwide Financial Planning

Kevin Warsh, the new boss of the US Federal Reserve, has been keen to make his mark. The US and UK central banks both left interest rates unchanged, as expected, but Warsh has signalled that he wants the Fed to say as little as possible about where rates are heading. What little he did say suggested he sees inflation as too high, and, with the US economy growing strongly, bond markets now expect rate hikes.

I have never understood why your pensions or investments should behave themselves because of an investment diary review date. Should stock markets know how to behave just because you have a date in your diary?

This week sees SpaceX shares start trading in New York. The IPO was heavily oversubscribed and many investors will watch the first day’s trading closely, looking to secure a stake or to pocket a quick profit, depending on their view of the company’s valuation.

Market predictions are comforting because they give chaos a suit and tie. Inflation will do this. Rates will do that. It all sounds clever, particularly when delivered by someone in a studio with a serious face and a chart behind them, and a wee bit of dramatic music.

Downturns are painful. They frighten people because the headlines are loud, and the recovery date is never printed neatly on the first page. Nobody rings a bell at the bottom.

Equity markets were less active this week. Broadcom’s update was positive but fell short of expectations, holding back AI-related tech stocks.