Daily Archives: September 21, 2012

James Mackintosh

Investors in luxury goods producers tend to spend a lot of time following what’s going on in China, for good reason. China’s legions of corrupt officials have a penchant for bling (as well as luxury cars and gambling), and plenty of ability to garner the cash needed for fancy western watches and handbags. Lately they’ve been cutting back, as the slowing economy and rising scrutiny from bloggers and the public makes open diplays of wealth less acceptable.

It might be easier simply to focus on what is going on in the US. Are households finding their share portfolios rising faster than their house prices? Shares are easier to cash in to fund that oh-so-desirable Cartier watch, although most people would have to sell their house to afford a £1.2m handbagRead more

John Authers

The S&P 500 has almost completed its round trip, and done so remarkably quickly. It only has about 5 per cent to go before it reaches its all-time high from 2007. Today’s video guest, the ever-interesting David Ranson, suggests that this was predictable, because asset markets reliably follow an exponential recovery path after a big fall.

Certainly, that pattern fits this recovery remarkably well: Read more