Global issues driving financial markets in 2008

Andrew Milligan explores the main aspects of the talk he made in June, pointing out what was right, what was wrong, and how recent market events have overtaken or altered the earlier analysis

In June, I spoke to the Senate Investment Conference in Monte Carlo on the subject of 'global issues driving financial markets into 2008'. My talk to the conference was in three parts, explaining the workings of the classic investment cycle, considering some of the major risks, focusing in particular on the credit situation, and concluding with some specific advice. By the investment cycle, I meant medium-term performance of bonds, cash, equity and property. This is related to the economic cycle of boom and bust, but also to the political cycle of election and prime ministerial resignatio...