The signs of a Great Unravelling are appearing

The signs of a Great Unravelling are appearing By Jim Mellon Another month of the phoney war in markets; range bound almost everywhere, except in Japan – which is performing well – and ahead of every other major market. (So it should: it's the cheapest and best bet!). Don't think for one moment that this quiet period and low volatility will last – I've just been on a trip through the Somme and to the Normandy landing beaches; and our journey was  a sobering reminder that phony wars have a habit of turning into something much worse. There is something called the Dunning Kruger effect; incompetent people rarely realise that they are thus handicapped. And the best demonstration of this is the current crop of central bankers. Mostly incompetent to the core- and without realising it. While the likes of Kamikaze Kuroda and Mark Carnage are congratulating themselves on "saving the world", – Gordon Brown style – the signs of a Great Unravelling are appearing. Bond yields are rising (and this could have been predicted by a monkey), the effects of negative interest rates are now generally believed to be pernicious by all except their perpetrators. And banks in many parts of the world are beginning to feel the strain – especially in Europe and in China. Corporate cannibalism, otherwise known as share buy backs, are having a progressively lessened effect on earnings, and indeed, on share prices. This is particularly so in the US, where despite US 175 bn of share buy backs a quarter, earnings are falling, and valuations remain especially stretched... Click HERE to read the full article The Master Investor Market Report The FTSE 100 closed the day at 7,017.64, an increase of 31.24 points. The FTSE 250 fell 58.67 points to finish at 17,801.85. The FTSE All Share climbed 8.19 points to finish at 3,802.06. The FTSE AIM All Share ended the day at 825.56. Shares in FTSE 100 hospitality operator Whitbread (WTB) dropped by 3.75% to 3,699p despite underlying pre-tax profits for the six months ended 1st September climbing by 5.4% to £307 million. Total revenues for the period were up by 8.1% at £1,555.9 million with strong performances by both the Costa and Premier Inn brands. Management say that they are on target to hit full year targets despite uncertain macroeconomic conditions.   Check out our brand-new October issue! Click HERE to read. Consumer travel outfit National Express (NEX) saw operating profits climb 9% in constant currency terms over the third quarter of its financial year as its overseas businesses grew strongly. Reported results expanded even more quickly as these foreign earnings were further boosted by shifts in exchange rates in recent months. National Express shares climbed by 10.70p to 367p. Shares in AIM-listed palm oil outfit MP Evans (MPE) soared 43.11% to 610p after the company received an unsolicited offer of 640p per share. Management said that they view this bid as wholly inadequate, but has yet to take a formal position. In the meantime, they urged shareholders to take no action. Tomorrow's news today Antofagasta (ANTO) will publish third quarter results. Quote of the day "Nine-tenths of wisdom is being wise in time." - Theodore Roosevelt Latest Stories ITM Power: Return To 35p resistance expected By Zak Mir ITM Power had been a slow burner until now, on both a technical and fundamental basis. But it would appear that the hydrogen refuelling stations company is set to take off in a positive way... Click Here To Read The Full Story Vietnam is strikingly attractive to investors By Evil Knievil The most interesting article over the weekend was offered by Richard Buxton in the SunTel business section. He pointed out the lunacy of determining deficiencies in pension funds by assuming that the annuities that they face buying must have their cost determined by the current yield on gilts... Click Here To Read The Full Story How to build a property portfolio – part 2 By Caroline Drewett Becoming a home owner     is an obsession of British Millennials. Unlike many Europeans and Asians who are happy renting throughout their twenties and thirties, most Brits chase the dream of owning a home as soon as possible... Click Here To Read The Full Story French Connection: Bear squeeze should lead to 50p plus By Zak Mir Shares of French Connection are back in the frame this week as a takeover situation develops. It is surprising that we have not seen the retailer as a red-hot contender on a regular basis... Click Here To Read The Full Story National Grid has defensive appeal By Robert Stephens The prospect of a new US President, a US interest rate rise and Brexit mean that defensive stocks could become increasingly popular. That's why I'm optimistic about National Grid's future prospects... Click Here To Read The Full Story Join the movement on social media: Copyright 2016 Master Investor Ltd, All rights reserved. You are receiving this email because you opted in at our website. If a Daily Bulletin is too frequent, why not opt in to our once weekly mailing list for a round up of the week's news straight to your inbox. Once Weekly Round-Up Our mailing address is: Suite 88, 22 Notting Hill Gate, London W11 3JE Master Investor is a trading name of Master Investor Limited. 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