Classic pattern
Article Abstract:
Gerrard and King have focused on the US economy and excess liquidity, rises in asset prices and inflation. Rises in real-money balances tend to push up the price of assets, including stocks, and higher asset prices then tend to boost output and demand. When output rises above trend level, inflation becomes a risk. There is little evidence of faster productivity growth in the US. This means that the medium term outlook for interest rates and inflation is bearish in the US and United Kingdom.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Making money from Uncle Sam
Article Abstract:
The US stock market recovered in Aug 1996 after a fall in Jul 1996 and many analysts are optimistic about prospects for this market. There are concerns, however, such as pressure from wage rises, which could affect profits or push up prices and this would tend to depress the price of shares. Mutual funds have grown so much that there is concern that this market could be saturated. UK investors are already exposed to the US since events in US markets tend to have an impact in the UK.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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