A bad year
Article Abstract:
UK share prices may perform poorly in 1997, according to Goldman Sachs. Valuations are not justified at a mature phase of the economic cycle, and UK interest rates could rise by 1.25% in the nine months from Dec 1996. Share prices tend not to rise when interest rates rise unless there are countervailing factors such as undervalued shares. Some sectors could perform well such as those geared to the domestic market, since pound sterling is likely to be strong. The performance of other sectors such as utilities will be affected by government policy and exisitng valuations.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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When cheap money is not enough
Article Abstract:
United Kingdom interest rates could be cut in April 1999 due to weak growth in gross domestic product and low retail price inflation as well as rises in unemployment and the value of pound sterling. A cut in interest rates may not help stock prices, especially if the rate cut is the last for the interest rate cycle. Expectations of lower rates tend to help stock prices, and low rates alone will not help stock prices. The UK is expected to undergo an economic recovery, so rates will rise again.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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