Investment Markets Overview — W/E 16th September 2016

£1,000,000,000,000…..is the stated deficit within UK defined benefit pension schemes, pushed ever higher by plunging UK yields and increased levels of Bank of England QE nonsense. These pension schemes require an annualised 6% return or more to match assets against liabilities, but with near zero yields available you do not have to be Einstein to see the problem. This is a global concern, created in the main by the Central Banks’ and aside of it threatening future pension expectations, places pressure on company retained earnings and dividend payments as they face increased contributions to fill the gap. Whilst Global in nature, the Bank of England deserves a special mention as it came under criticism this week from the former pensions minister, Lady Altmann. Whilst Governor Carney shows a self-congratulation condescension in respect of his policies, encouraging the prudent including pension schemes to move up the risk-scale into iffy corporate debt and equities, the B of E defined benefit scheme has remained near-fully invested into the low/zero yield “perceived safe havens,” according to Lady A. Furthermore, as a typical private employer struggles to cap its 5-10% typical contribution due to the widening deficit, the Bank of England pension scheme, funded by the UK tax-payer, last year contributed, thanks to the said tax-payer, the equivalent of 50% salary to the tune of £90m including the Governor, to make up the shortfall required to keep it in surplus whilst the Bank of England employees make no contribution at all.

A wild 5-day for the S&P 500 was saved by Apple, which had its best week in 5-years. More on the markets’ main events are listed below:

16-sept-2016

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 . . .

 Text book investing recommends that investors’ hold a diversified portfolio, usually between differing asset classes and where one is only holding stocks to diversify across market capitalisation ……

Charts:
1.  Indices Weekly
2. US Small Bus Optimism V US Consumer Sentiment
3. UK Unemployment & Wages V UK CPI
4. Japan PPI V  Tokyo Condo Sales
5. Commodities Weekly

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

                               “History continues to teach, assuming that one is open to learn.

Click Here to view Details of the full version of this Newsletter which includes full text and detailed

 

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