This article was written by Matthew Cushen, co-founder of Worth Capital.
Ten year anniversary
As we approach the ten-year anniversary of the financial crisis there seems an interesting contrast between then and now.
10 years ago we had a financial meltdown that had a seismic impact on day-to-day economics and the life of the man in the street (at least a Western developed market street). It was the bankers and the investment community that bought the pain that was then shared across the society, and the age of austerity was born.
Whatever the causes – continuing austerity measures, further globalisation, migration and/or increasing automation – in the developed world we now find ourselves in a period of remarkable political and social turmoil. Only Germany seems to be the exception that proves the rule.
But unlike 10 years ago, the impact of this turmoil on the big investment markets barely registers. Why is market sentiment so benign? Fair enough for the FTSE 100, the impact of our pound continuing to tumble benefits the high participation of foreign earnings. But the S&P, FTSE 250, 350, AIM have all looked for the most part impervious. Even stocks like Merlin Leisure – that you’d expect to be hit by the recent terrorist activities – have stayed buoyant.
