July, 2017 | Moneytruths

Navigating the new Industrial Revolution….

Tuesday 25th July 2017

In this issue of Money Truths….

Navigating the new Industrial Revolution…

Dave can’t be with us this morning. He’s dealing with something that takes him away from his desk.

In his absence, we revisit Dave’s take on the new Industrial Revolution – what it might look like, what it might mean and why there’s no need to buy into the lurid headlines that write human beings out of the world of work….

This piece is taken from our archive and was originally published in November last year. Nothing has changed in the meantime and it does no harm to reappraise ourselves of a key issue that will affect us all. Over to Dave….

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Headline writers love to paint vivid pictures….

It doesn’t matter how disconnected the headline is from the truth – only that it grabs attention and provokes response….

Newspapers and magazines depend on advertising. Without it they perish. Attention-grabbing headlines help secure that revenue.

Headlines attract readers by pandering to their fears and prejudices. The bolder the headline, the better its prospects of attracting eyeballs – the readership on which the publication sets advertising rates.

Recently the newspapers have been boldly painting a picture of a dystopian future where robots take over and humans are surplus to requirements.… Click here to read more

A tale of two stories….

Tuesday 18th July 2017

A tale of two stories….

For 9-years the Bank of England has been hammering savers whilst at the same time rewarding market speculators….

Abnormally low ‘emergency’ interest rates have held across the entire period (well below the long-term average of 5%) and have served to discourage savers from placing money on deposit – forcing them into speculative and potentially-risky markets if they wanted a chance of earning a return on their money….

Low interest rates have also reduced the cost of carrying and servicing debt – fostering the illusion that debt is affordable and obscuring the risks associated with it….

The central bank’s massive injections of cash into the system – otherwise known as money-printing or quantitative easing – made credit plentiful and fueled an orgy of corporate stock buybacks, mergers and acquisitions, buy-outs and all the rest of it….

Asset prices have risen across the board. Nowhere is this more evident than in the stock market which has scaled heights never previously seen.

The value of FTSE 100 stocks has more than doubled since 2009. FTSE 250 stocks have more than tripled. Both indexes continue to ride high.

Take the market as your primary gauge and you might be forgiven for believing that Britain is enjoying something of a boomtime.… Click here to read more

Red flags waving….

Tuesday 11th July 2017

Red flags waving….

I make a point of keeping a close eye on the financial weather in the United States….

And there’s a good reason for that. The effects of what happens in the world’s largest economy – and its markets – are felt globally.

By keeping myself appraised of developments in the US economy and its markets, my intention is to be forewarned about – and forearmed against – what is heading our way in Britain….

Markets – blind or just complacent?

Stocks in the US and the UK continue to ride high – either at or within touching distance of the highest levels in market history….

Investors appear to believe that the bull market in stocks – which has already been rampaging for 100+ months – is going to keep on trucking….

But I disagree. I think investors should be preparing for a painful correction at best or a devastating crash at work.

I’ve been making my case for some time – catch up with the most recent coverage here and here and here….

With each week that passes more red flags appear. The market appears not to see. Either that or it does see but doesn’t comprehend or doesn’t care….… Click here to read more