personal investment blog

The ECB, QE and the waiting game

The ECB, QE and the waiting game

12 Feb 2015

Quantitative easing is a process by which a central bank buys relatively safe assets (mostly government bonds) and thereby puts cash into the hands of the newly-ex owners of those assets. In the early years of the financial crisis, this was effectively a life-support system for financial institutions which, post-Lehman Brothers, looked like they might fall...

Jittery January

Jittery January

6 Feb 2014

“The bond markets are suggesting that we are looking at a fairly gentle, low inflation recovery.” The dangerously alluring feeling of comfort that I wrote about in my Q4 report did not last long. Major stock markets have fallen this year: FTSE -4%, Dow Jones -6%, Nikkei -13%. Many financial commentators are saying that this is the result of weakness...

Gold rolled over

Gold rolled over

16 Apr 2013

The falling gold price is making the headlines and has reportedly caused a well-known hedge fund manager, John Paulson, to lose $1billion of his clients’ money. Another very smart guy named David Einhorn has also suffered heavy losses on behalf of his investors, according to reports. These men made their names and presumably their fortunes by betting...