Wyn Thomas - Axys Investment Management

Weekly Market Update 12th June 2015

GREECE OVERSHADOWED BY US RATE EXPECTATIONS

Aside from the absurdity of Greece’s debt negotiations, this week the lunatics completed their takeover of the asylum; George Osbourne promising a law to force present and future governments to run balanced budgets. While on the surface this may seem sensible, it is undoubtedly a political move designed to skewer the labour party. Worse, as no government has ever balanced the books, this one will surely find a way round its own law, which basically commits all of the nation’s infrastructure investment to be costly private finance. Although the deficit is a hot topic, it seems better business for the government to borrow money at close to zero per cent interest, than pay an army of consultants to rig up off balance sheet deals at 7 per cent plus. Read More……