UK house prices hit an all-time high
UK house prices hit an all-time high
The Noise
- UK house prices hit an all-time high this week as pent up demand fuelled the largest monthly rise in 16 years. The average home in the UK is now worth over £224,000, 3.7% more than they were last August. Housing and housebuilding stocks have benefited from the announcement with companies such as Taylor Wimpey and Bellway rallying on the news.
- US stocks fell yesterday as the rotation away from technology shares picked up pace. The last few months have seen the sector running hot with large technology names such as Apple, Amazon, Google and Microsoft reaching all time highs. Cries of stretched valuations in some of these names are rife in the market but the verdict on this speculation remains to be seen.
- Japanese Prime Minister Shinzo Abe announced his resignation last Friday to undergo treatment for a chronic illness, ending his run as the country’s longest serving leader. As Japan looks to a new Prime Minister, the stock market and the yen have both stayed strong, reflecting confidence that any current policies will be maintained.
The Numbers
The Nuance
This week has seen a pullback in tech companies across the board with household names such as Apple, Netflix, Tesla and Facebook giving up some of the gains they’ve made over the last few months.
This moderation isn’t surprising given the recent strength of these companies and rather stretched valuations in a few of them. Despite the movement, we don’t see this as being an alarm bell just yet; the longer term trends are likely to persist for the time being.
Whilst tech has sold off, other areas of the market have benefited from the rotation of portfolios. Cyclical travel companies such as Booking Holdings and Intercontinental Hotels Group have seen an inflow of capital, benefiting our portfolios. We keep a close watch on these industry trends, ensuring our portfolios are positioned appropriately given the market outlook.
Quote of the Week
“I take responsibility for trusting the word of a neighbourhood salon. It turns out it was a setup.”
This week, the Democratic House speaker was captured on security footage (which was leaked to Fox News) inside a San Francisco hair salon not wearing a mask, even though the city’s Covid-19 restrictions only allow service outside. Pelosi will find it very hard not to come across as a hypocrite given her frequent rebukes towards President Trump for undermining his own government’s advice on wearing masks. Her defence? She accused the salon of setting her up, going as far as to say “I think this salon owes me an apology for setting up”. Ok Nancy, keep your (beautifully styled) hair on.
Source: bbc.co.uk