'DICTATORS & DIVIDENDS "“ WHAT NEXT FOR THE UK STOCKMARKET', Harry Morgan
Wed, Apr 13th 2016 at 7:00 pm - 8:30 pm
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The now annual talk by Harry Morgan was in two main parts – the Spanish Civil War and the Prospects for UK shares.
He outlined the very interesting history of the Spanish Civil War (one of his interests) and how Britain in pursuit of an easier life and fear of the Nazi threat recognised the Franco Government as legitimate - thereby putting the interests of large British Mining Company Rio Tinto Zinc’s ability to pay dividends before democracy.
This ties in with the situation we are in today with uncertainty about Dividends and Low Interest Rates contributing to a very gloomy atmosphere for investors.
Mining Companies, Oil Companies and Banks make up 40% of the FTSE 100 index. The sudden weakness and volatility in Dividends is causing concern. Many factors are contributing to this: The slowdown in China, oil price under pressure, government deficiencies and the forthcoming Referendum all lead to investors being very nervous.
The second factor that is fuelling this lack of confidence is the continuation of the exceptional low level of interest rates. Adding to this is Quantitative Easing to get growth going but still having low growth. There is also too much investment in property on the back of low interest rates and Companies being encouraged to make debt fuelled acquisitions.
These two factors – low interest rates and uncertainty about dividends means everyone is very negative about investing – thinking it safer to have cash. However, going in for quality shares and quality funds and waiting for the up-term is a good strategy. Stay cautious but stay alert and use the bad days in the markets to provide opportunities.
Vote of thanks was given by Brian Buchanan Report by Pearl Clark
He outlined the very interesting history of the Spanish Civil War (one of his interests) and how Britain in pursuit of an easier life and fear of the Nazi threat recognised the Franco Government as legitimate - thereby putting the interests of large British Mining Company Rio Tinto Zinc’s ability to pay dividends before democracy.
This ties in with the situation we are in today with uncertainty about Dividends and Low Interest Rates contributing to a very gloomy atmosphere for investors.
Mining Companies, Oil Companies and Banks make up 40% of the FTSE 100 index. The sudden weakness and volatility in Dividends is causing concern. Many factors are contributing to this: The slowdown in China, oil price under pressure, government deficiencies and the forthcoming Referendum all lead to investors being very nervous.
The second factor that is fuelling this lack of confidence is the continuation of the exceptional low level of interest rates. Adding to this is Quantitative Easing to get growth going but still having low growth. There is also too much investment in property on the back of low interest rates and Companies being encouraged to make debt fuelled acquisitions.
These two factors – low interest rates and uncertainty about dividends means everyone is very negative about investing – thinking it safer to have cash. However, going in for quality shares and quality funds and waiting for the up-term is a good strategy. Stay cautious but stay alert and use the bad days in the markets to provide opportunities.
Vote of thanks was given by Brian Buchanan Report by Pearl Clark
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