Investment markets Overview – w/e 6 June 2013

The outgoing Governor of the Bank of England, Mervyn King, appeared this week on the BBC’s “Desert Island Discs,” an iconic British institution that allows guests the opportunity of telling the audience of their view of life and experiences, interspersed with a selection of their favourite music. So, in this case, it was Mervyn’s swan song opportunity of précising his 15 years at the helm of the bank. It was insightful when he replied to a question on his achievements and highlights whilst at the B of E, answering to the former, “a real dedication to understanding how an economy works,” and as to the highlights, “many, but in particular the celebrating of the bank gaining independence , and of changing the format of the annual staff cricket day.” Time will be the judge on just how wisely this independence to set monetary policy since 1998 has been driven by Governor King, but equally interesting was his choice of Bob Dylan’s “Highway 61” within his music choice. I confess to not really understanding the lyrics of this Dylan song but start this week with part of the lyrics from the final verse:-

Now the rowin’ gambler he was very bored
He was tryin’ to create a next world war
He found a promoter who nearly fell off the floor
He said I never engaged in this kind of thing before
But yes I think it can be very easily done

Some suggest that the first two lines relate to the alpha-dog of political power, which over the past 70 years or so has been the US of A, with the stunning coincidence of “severe domestic pressure = outside conflict,” whilst the final three lines could be construed as the Central Bank’s “independence” on QE and the other stimulative measures introduced post 2007. Whilst it’s been easy to introduce, the exit may be rather messy.


Subscribe to the Full Investment Markets Overview Newsletter which contains the following additional commentaries:-

  • US economic data . . .

  • Euro-Zone   . . .

  • The UK . . .

  • Out East   . . .

  • The $US index  . . .

  • Within the commodities complex  . . .

  • Economic data due next week includes  . . .

  • Stock market historians, such as Schaeffer Research, have picked up on the recent “Tuesday” effect,   . . .

  • Charts:-
    1. Indices Weekly
    2. US Trade Deficit vs S&P500 Index Inverted
    3. Euro-Zone GDP vs Euro-Zone Retail Sales
    4. OZ GDP Y on Y vs China GDP Y on Y
    5. Oil Price


Table of 15 Indices, 11 columns of detailed information, for accurate analysis

“History don’t always repeat, but it sure do rhyme

Click  HERE to view Details of the full version of this Newsletter

which includes full text and detailed Charts for each section


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