News

Market Update

The International Monetary Fund (IMF) is optimistic about the prospect for Global Recovery over the next two years with America and the UK leading the way.
Low inflation seems certain to stay with us for the medium term; currently 70% of developed economies have inflation below 0.5%
Anxiety levels over Greece rose once again, with the Greek Government asking the local authorities to repay cash to the Government, to in turn pay their own employees and the IMF.
To help understand the scale of Greece’s problem, the current rates for a German Bond (equivalent of a UK Gilt) is 0.085% (the price Germany pays to borrow money) A Greek Bond has reached 27.9% this week, which means the Greek Government is paying credit card rates to borrow money. From the outside, there appears to be only one answer to this.
Meanwhile on home turf, we see the election having a dramatic effect on the housing market. The uncertainty has caused a major downturn in viewings across the UK and we reflect that.
Hopefully some party will get a majority and we can all get on with our lives. Uncertainty is the worst possible outcome for any market particularly property.
Bill Reid BEM BA NAEA DipPFS
Reid Estates
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