Waging war on equity returns
Article Abstract:
Recession may not affect stock prices as much as wage inflation, and there is concern that wage pressures could increase in the United Kingdom as unemployment drops. Skills shortages are appearing, and wages have risen sharply in the construction industry. There is concern that this could spread to other sectors. Unemployment may drop to lower levels than previously without causing inflation, though it is uncertain how far it can drop without inflation becoming a problem. Unemployment is also expected to rise in the UK by the end of 1998.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Why investors should beware the L-word
Article Abstract:
Liquidity refers to three aspects of factors affecting the United Kingdom stock market. Institutional investors have large amounts to cash to invest, the equity market in the UK is shrinking due to takeovers and stock buybacks, and government borrowing is dropping. Liquidity does not always lead to a rise in stock prices, and can create problems if it leads to increased consumption, rising inflation, and higher interest rates. The UK economy may see lower growth, on the other hand, which would allow interest rates to drop.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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