Your Argyle Financial Bulletin for October 2015
Dear Client,
The impact of the East.
"The old order changeth yielding place to new" (Alfred Lord Tennyson) As you will doubtless be aware 2015 has been a particularly difficult year for investment growth, as uncertainty in world markets has made extreme volatility an almost every day occurrence. Our research has been challenging, as we continue to search for signs of real growth potential coupled with stability and, although we remain optimistic, predicting what the future holds does not get any easier. Real changeOne aspect we have found interesting are the tangible signs of change, in relation to the balance of power across the world's largest economies and how it impacts more directly on all our lives than ever before. We see a constant media debate about impending interest rate rises in the UK and the US, which we are being told will herald the return of 'normality' as our economies continue to recover from the financial crisis of 2008. However, it is increasingly the events happening elsewhere, notably in China and Europe, which have a more importance impact. Playboy removes nude picturesAlthough seemingly anecdotal, irreverent media attention given to a decision by Playboy magazine to cease publishing nude pictures (a pivotal part of its brand since 1953) simply highlights the position which China is taking on the world stage. Playboy's decision was actually an economic one driven chiefly by its business interests in China, where more than 50% of its worldwide 'Rabbit' merchandise is sold. To protect (and expand) this market Playboy essentially agreed to Chinese demands to remove nude pictures from its publications. China is now the world's second largest economy and although its movement to a more consumer driven economy has brought about a slight drop in growth it still remains the fastest growing economy in the world by far. Stimulating readingThose confused by the myriad conflicts in the Middle East might be enlightened by a book we are currently reading... an easy read, but a compelling narrative about the events which brought us to where we are today: To Hell and Back, Europe 1914 -1949 by Ian Kershaw. |