Alan Steel
01506 842365
MENU
  • Home
  • About Us
    • Close
    • About Us
    • What We Do
      • Close
      • What We Do
      • Our Services
      • Our Philosophy
      • Our Awards
      • Our Reputation
    • Who We Are
      • Close
      • Who We Are
      • Meet the team
    • Our Approach
    • Financial Planning
  • Testimonials
  • Investments
    • Close
    • Investments
    • Investment Advice
    • Portfolio Building
  • Pensions
    • Close
    • Pensions
    • Retirement Planning
    • Early Retirement
    • Pensions as simple as...
  • Tax
    • Close
    • Tax
    • Tax Advice
    • Tax Planning
    • When I'm Dead and Gone
    • Inheritance Tax
    • HMRC Digital Accounts
  • Insights & Media
    • Close
    • Insights & Media
    • Letters from Linlithgow
    • Informing You
    • Letter from America
    • See us in the Press
    • Master Investor
    • Points of Few
  • Contact Us
Independent financial advisers founded in 1975
Over £1.4 billion client funds under management
17 industry awards for advice since 1989

By Mike Williams, Genesis Managing Partner

Founder and Managing Partner of Genesis Asset Management, New York

Letter from America

Are You Waiting for “Red Ink”?

By Mike Williams | Friday, 03 November, 2017

So, US GDP despite Mother Nature’s anger came in far better than expected.

There will likely be adjustments in the coming months, but historically speaking they tend to move things higher.

It’s a $20 Trillion economy moving at a 3% annual growth clip. Not too shabby.

And within it are the significant deflationary forces of Generation Y, permitting more and more energy to build into the foundation of our economy without the growth-killing domino effect of inflation.

Red Chart1

Early indications for Q4 suggest better things to come.

Red Chart2

Yet even as tech's big names have literally knocked their numbers out of the park, sentiment remains tepid.

Another three weeks of this and we’ll have recorded three straight years of AAII bullish sentiment below 50%.

Hey, let’s pray for another three years:

Over Priced Chart2 (1)

The most notable part of the data above is watching how the numbers shift.

Almost four times as many left the neutral rank to turn bearish in this recording period.

True enough that bullish sentiment ticked higher, but bearish sentiment surged 5.1 percentage points to a seven-week high of 33.0%.

Now, 33% may not sound like much, and it’s certainly lower than the 39.6% bullish reading, but when you consider markets have been meandering around or hitting record highs on a sometimes daily basis it suggests a strong and deeply-seeded negative undercurrent.

The Investor herd seems to be standing by for the next splash of media red ink.

That’s good news for long-term investors.

©2023 Alan Steel Asset Management Limited is authorised & regulated by The Financial Conduct Authority. Please note that the Financial Conduct Authority does not regulate some forms of tax advice. Company Registration: SC58014

You should remember that the value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

The investment services and/or investments referred to in this website may not be suitable for you. If you are unsure we suggest you contact us to discuss matters further. If we believe our services are not right for you we will tell you.

When investing money, whether for income or growth, you are placing your capital at risk as the value of investments may vary, so you could get back less than you started with.

The Financial Conduct Authority does not regulate Tax Advice, Trusts or wills. Alan Steel Asset Management Limited is authorised and regulated by the Financial Conduct Authority. The guidance contained in this website is subject to the regulatory regime of the UK.

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients.

FOS details can be found at www.financial-ombudsman.org.uk

Alan Steel Asset Management Limited are not responsible for the content of external sites.

  • Cookie Policy
  • Privacy Policy
  • Website terms and conditions
  • Tax Services Privacy Notice
  • Contact Us

This site uses cookies. By using this site you agree to the use of cookies. Read our Cookie Policy