Monday 21 January 2013
Snow Joke for a triple dip
The heavy snowfall in the UK will depress economic activity in Q1 enough that the likely slight fall in Q4 will be repeated and so we will have a triple dip. Having said that, it does not matter too much as the -0.1 readings are hardly like a repeat of the 7% falls of 2008!
But the vibe is not good and no doubt he markets will start to reflect this again in the next month or two.Whilst long-term the switch from Bonds to Equities will underpin a good boost for shares overall, the loo-out for the immidieate future is back to 6000 or less on the FTSE.
The Prime Minister dragging up Europe as a topic is not really helping matters either - that is an issue to be dealt with at key moments when th epublic is focused, not to raise all the time to appease your own headbangers. Oh well, long ago has Cameron shot his bolt.