Dangers in the rush to buy bonds

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Investment bubbles are hard to spot. Just ask Alan Greenspan. The former chairman of America’s central bank famously warned in December 1996 that stock market investors were displaying “irrational exuberance”. He was right but his timing was wrong. It was fully three years before shares stopped rising. So when people say that a bond market bubble

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The US election and the markets

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The US election is becoming one of the next key considerations for equity investors. Ironically, the state of the American economy and stock market could influence the election outcome. In the past, the lower the level of inflation and the higher the level of economic growth, the greater the incumbent’s share of the votes has

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Darkest before the dawn

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Is the recent pick-up in several major stock markets more than just another short-lived rally? The latest headlines are not often the best indicator of the direction of the market, as investors look to the future while economic statistics focus on the rear view mirror. They can tell different stories at the same time. Dominic

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The 10 questions investors are asking…and the answers

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What are the top 10 questions advisers are getting from their clients? Here they are – with answers provided by Fidelity Worldwide Investment. How does the situation in Europe affect investments? If you were to try to list reasons why stock markets have risen so much over the past three months, a reduction in worries

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Ways to handle market volatility

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Markets are being driven by politics and they won’t stabilise while the eurozone situation is unresolved and, more importantly, while the threat remains that Spain or Italy could go the same way. The eurozone accounts for around 10% of the value of world stock markets and European companies derive less than half of their profits

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Big investment themes – what’s next?

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The world is passing through a period of massive change – which themes will drive markets in the years to come? In an age of instant communication in which investors have become drawn into the daily contortions of financial markets, it pays to stand to back and consider some of the longer-term themes. Many of

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Does the January effect signal a good year for equities?

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Ben Graham, Warren Buffett’s mentor and the father of modern share analysis, explained the ups and downs of the market to his students like this – he told them to imagine they were part-owner of a business with a neurotic partner called Mr Market, who every day would offer to buy their share in the

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Is Japan a good investment prospect?

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It was all over the headlines, but has since disappeared –  what’s happening to Japan’s economy now? Since the March earthquake, the Japanese economy has plotted a v-shaped recovery as supply-chain disruptions were quickly resolved and manufacturing facilities were brought online ahead of schedule. Production normalised in most industries and sentiment indicators rebounded. As a

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In two speed world economy, one region provides two thirds of global growth

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We inhabit a two-speed economic world – and the growth differential between buoyant East and depressed West is getting wider. More than two thirds of all global growth this year and next is expected to come from the developing world. The main downgrades to growth are all in the developed world. Citibank recently slashed its

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