Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

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March 12, 2024

Ruffer highlights the different path of bonds and stocks

UK Companies

Ebiquity, the media spend analyst, said that it expects the quantum of its client spending to remain slightly more subdued until more consumer confidence returns. It still expects to make further profitable progress this year, supported by its transformation programme, continued cost management, and growing Digital Media Solutions business.

Pawnbroker H&T‘s pledge book grew 28%, and EPS was ahead by 31% with growth in all areas. Profit on the purchase of gold was up 27%. 

Like Ramsdens yesterday, H&T demonstrates the lack of options its customers have for accessing personal finance. UK consumers continue to sell gold into this price rally. 

The Ruffer Investment Company, the investment trust focused on capital preservation, said there had been an increasing divergence between bond and equity market performance this year while growth and inflation risks are being re-priced. Inflation is the most realistic long-term solution to bulging government deficits, and any meaningful fiscal or monetary support for markets will only arrive after asset prices have been hit.

It’s always good to note what the market permabears have to say. The Ruffer guys are never a cheerful read, but they are always insightful, and like stopped clocks, they are sometimes accurate. 

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