bck体育官网手机版

Why investors are about to be swamped with new shares – MoneyWeek

Meanwhile,theOrganisationforEconomicCo-operationandDevelopmentsaysthatBritainispasttheworst(yes,thisisthesameOECDthatlastmonthreviseddownitsgrowthestimateforthisyearto-3。

7%from-1。

1%inNovember)。

Sojusthowexcitedshouldwebe?

Theansweris,notvery

Goodreasonsnottotakethisbearmarketrallyseriously

Thegoodnewsfortheglobaleconomy,isthatactivityhasstoppedcollapsingquiteasrapidlyasitwas。

ButasSteveRussell,investmentmanageratRuffer,putitatourRoundtablemeetinglastmonth(MoneyWeeksRoundtable:treadwarilyandwatchoutfordeflation),theglobaleconomycouldnthavecontinuedtoshrinkattheratesseeninthefirstquarter,becauseotherwisetheredbenothingleftofit。

Soanyuptickinactivityjustnowisonlytobeexpected。

Itmightbereassuringtoknowthatlifegoeson(howcoulditnot?

),butthatdoesnttakeawayfromthefactthatwereinforalongandpainfuladjustmentperiodahead。

AsHSBCchiefexecutiveStephenGreenputityesterday,theremaybegreenshootsintermsofconfidence,buttherealityisthatitstooearlytoexpectgreenshootsintheeconomicenvironment。

Therecessionhassomewaytogo。

Whiletheremayhavebeenaspringbounce,peopledontwanttomakefinancialcommitments。

Andtheresalsoaverygoodchancethatwhenthetimecomestotrytoreturnourbentandbrokeneconomiestosomesemblanceofnormality,wellseeanotherbigslump。

Becausemakenomistake,havingnear-zeropercentinterestratesandcentralbankschurningoutmoneyisnotasustainablestateofaffairs。

Theseareallgoodreasonsnottotakethecurrentbearmarketrallytooseriously。

Butonethingtherallyisdoing,whichwillhelpoutcompanies(thoughnotinvestors)inthelongrun,isgivingcorporationseverychancetheyneedtoraisemoneybeforeeveryonerealisesthisisntgoingtolast。

Whydemandforsharescouldsoonbeswampedbysupply

De-equitisationwasaphenomenonoftherecentcreditbubble,withcompaniesborrowingmoneycheaplyandthenspendingitonbuyingbacktheirownshares(ratherthanraisingdividends,aninfinitelypreferableoptionforprivateinvestors)。

Butnowthatdebtisexpensive,werestartingtoseethereverse–re-equitisation。

Enjoyingthisarticle?

Signupforourfreedailyemail,MoneyMorning,toreceiveintelligentinvestmentadviceeveryweekday。

SignuptoMoneyMorning。

Sofarthisyear,thetotalvalueofUKshareofferingshashitarecord£18。

8bn,reportsTheTimes。

ThelatestcompaniestotapthemarketsareTravisPerkins,thebuildersmerchant,andLonmin,theplatinumminer。

Theyrelookingfor£300meach。

Lastweekitwasprivateequitygroup3i,andhousebuilderTaylorWimpey。

EvencomputinggiantMicrosoftistakingadvantageoftheimprovedsentimenttoraisemoney,althoughthistimeinthecorporatebondmarket。

BecauseMicrosoftisoneofthefewcompaniesthatstillhasaAAAdebtrating,peopleareclamouringforthechancetolendthegroupmoney。

Thecompanyraised$3。

75bn,payingyieldsfrom2。

97%to5。

21%,accordingtotheFT,inadealthatwasseveraltimesoversubscribed。

Meanwhile,investmentbanksarerubbingtheirhandstogetheratallthejuicyfeestheycanrakeinfromthisactivity。

However,anycompanieslookingtogettheirrightsissuesawayshouldtakeadvantagewhiletheycan。

Allthisre-equitisationisyetanotherreasonwhyinvestorsshouldbeverypickyabouthowtheygetbackintothestockmarket。

Basically,therellbealotmoreshareshittingthemarketinthenextfewyears。

Andmoresupplygenerallymeanslowerprices。

Butaswevepointedoutseveraltimesinthepastfewmonths,justbecausewedontthinkyoushouldbebuyingaFTSEtracker,thatdoesntmeantherearentdecentindividualstocksaround–andthegoodnewsisthatthequalitystocksaremainlytheonesthathavebeenoverlookedinthecurrentrally。

Inthisweekscoverstory,welookatafewofthem(Hastheworstofthestockmarketgloomblownover?

)–andinFridaysissue,ourRoundtableexpertspickoutsomeothersafestocksthatyoucanrelyontoseeyouthroughtheongoingfinancialturmoil。

IfyourenotalreadyasubscribertoMoneyWeekmagazine?

subscribetoMoneyWeekmagazine。

Thenextbiginvestmenttrend

Andforthoselookingforglimmersofwherethenextbiginvestmenttrendsmightlead,therewasaninterestingstoryinTheTimestoday。

ItsthenewsthattheGovernmentwantstohavesmartmetersineveryhouseholdby2020。

Nowwehearthesesortsoftargetsbeingannouncedandre-announcedbytheGovernmenteveryfiveminutes,andoftentheylooklikesimpleattemptstodivertthenewsagendafrommoreembarrassingevents。

Butregardlessofhowrealisticthetargetis,theideaofasmartgrid–whichisbasicallyamoreefficient,user-friendlyversionoftheonewevegot–isagoodonewhichcanonlycontinuetopickupsteam,particularlywithgovernmentsacrosstheworldlookingforwaystostimulatetheireconomies。

WewroteaboutthecompanieslikelytoprofitfromsmartmeteringandasimilarprojecttoupgradetheenergygridinAmericainarecentcoverstory:HowtoplugintoAmericas$4。

5bnenergyupgrade。

Andwellbelookingfurtherintothisandothergreeninvestmentsinfutureissues。

Ourrecommendedarticlefortoday

Areweheadedfordeflationorinflation?

Willworldgovernmentsquantitativeeasingtrumpthecontractionintheworldeconomy,orareweallheadedforaJapan-styledeflationaryslump?

MartinSpringweighsupthearguments。

MMfooter(onMMarticles)?

Thisarticleistakenfromourfreedailyinvestmentemail,MoneyMorning。

SignuptoMoneyMorninghere。

NakedTextNakedText