The sensitivity test

Article Abstract:

There is a belief that United Kingdom interest rates will rise in 1999 amd 2000, though this may not be by as much as economists forecasts, and this could mean that stocks sensitve to interest rates perform well. Some construction companies have seen stock prices fall as interest rates have risen, due to fears of further rate rises. Underlying inflation has dropped and this could be linked to developments in information technology, and lower inflation means that there may be no need for rate rises.

Economic forecasting

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When history really is bunk

Article Abstract:

United Kingdom interest rates may be raised, and this could occur in the three months from the end of Jul 1999, though it may not occur immediately. Interest rate rises tend to depress stock prices, but this is not necessarily the case. Investors have often linked interest rate rises with higher inflation and further rate rises. This is likely to be less of a problem since the Bank of England has become more independent and more transparent.

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Bullish but wary

Article Abstract:

US interest rates may fall, and this could affect British rates. The implications for stocks are examined.

United States economic conditions, Monetary policy

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