No content should be relied upon as constituting personal advice or a personal recommendation, when making your decisions. The content provided has not taken into account the particular circumstances of any specific individual or group of individuals and does not constitute personal advice or a personal recommendation. Any opinions expressed are the opinions of the authors only. We have taken reasonable steps to ensure that any information provided by The Motley Fool Ltd, is accurate at the time of publishing. As stocks return to their fundamental value, I will be keeping a keen eye out for some bargains to add to my portfolio. Super-high valuations have been the norm for the last 18 months, and rising interest rates are starting to cool things off. I think that US markets are just experiencing a reality check. Interest rates are likely to keep rising in the near future, so things might get worse for US markets, but in my opinion, this doesn’t warrant the use of the phrase ‘stock market crash’ (even less so as far as the UK is concerned).
Therefore, although US markets have dropped, the situation in the UK seems to be better. There are many UK value stocks, like BT, Vodafone, and Legal & General that have performed well over the last 30 days. Adding in the 4% dividend yield, this takes yearly returns to just under 12% – not bad at all. Over the last 12 months, the index has returned over 7.7%. It’s up 0.8% year-to-date, and an impressive 6.4% in the last six months. Markets have taken a hit in the US, but in the UK, the FTSE 100 seems to be holding strong. But stocks are simply moving back to their fundamental value – and I feel this is nothing to be worried about. In my opinion, the recent hike in interest rates in the UK and US is one of the reasons why markets have contracted. This is bad news for stocks, as people keep less liquid cash because they can achieve higher returns on savings. To control inflation, banks contract the economy by raising interest rates. This is being repeated across the globe, with US inflation hitting 8% in April. The UK government keeps to a strict 2% inflation target, but in April the Consumer Price Index rose by 7.8% year-on-year. At the same time, people had more money to spend, and as a consequence of basic supply and demand, prices rose.įast-forward to 2022 and we now have steep inflation. Markets surged as a consequence, with growth stocks substantially moving beyond their fundamental values. “It shouldn’t have happened at Silverstone, even though it wasn’t a crash, and it shouldn’t have happened here.However, investors soon began to take advantage of these low rates, searching for higher and higher returns. “You should never cheer someone’s downfall or someone’s injury. Camera Icon Lewis Hamilton has criticised the fans who cheered when he crashed in Austrian GP qualifying. I’m grateful that I wasn’t in hospital and I wasn’t heavily injured,” added the sport’s most successful driver. “It’s just mind-blowing that people would do that, knowing how dangerous our sport is.
#CONDUCT TOGETHER CRASHING DRIVER#
“A driver could have been in hospital, and you are going to cheer that?
“I was going through a bunch of stuff in the crash, but to hear it afterwards you know.I don’t agree with any of that, no matter what,” said Hamilton of the cheers after he hit the tyre barrier at speed on Friday.
Camera Icon Lewis Hamilton walks back to his pits after he crashed into the track wall during qualifying. Red Bull’s championship leader was booed when he qualified on the front row and cheered when he slowed in the race, a puncture and car damage dropping him from the lead to seventh.
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