MoneyTalk

 

The Outlook For 2013 -- The End Of An Era

31 December 2012
In this week’s episode:

David Kuo chats with Justin Urquhart Stewart from Seven Investment Management about the outlook for 2013 in the last Money Talk podcast of the year. They look at America's fiscal fudge, Europe's debt debacle and the UK's decision to appoint Canada's Mark Carney as the next governor of the Bank of England. They also discuss what impact China’s new leader, Xi Jinping, could have and lots more. A transcript of this podcast is also available.

 

Are you looking to profit from this uncertain economy? "10 Steps To Making A Million In The Market" is the very latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- it's free.

David Kuo and Justin Urquhart Stewart
David Kuo and Justin Urquhart Stewart

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Comments

The opinions expressed here are those of the individual writers and are not representative of The Motley Fool. If you spot any comments that are unsuitable hit the flag to alert our moderators.

Sianwill 01 Jan 2013 , 3:01pm

Justin is too frivolous and is a symptom of why we are where we are. He makes his money from the financial service industry and many things he suggests are not built on logic or a need for sustainable investment but on what would increase the profiteering of people in the finance industry at the expense of the investors. Take for example his suggestion that stamp duty should be abolished. The likelihood is that subsequent house price inflation would simply eat more of the house buyers money when they make their purchase. It is not a pointless tax – it is a sensible control on house price inflation which is already too high.

As for Justin's idea that public sector spending is too high, he is right to an extent and the government are dealing with this. However, he makes no mention of the far more detrimental effect of the banking sector and financial services industry in particular. Justin, along with many others, blew the Tech Boom bubble, the House Price bubble more than most – just consider his assertion that the collapsing Marconi was a great investment and would come good or even in this present podcast the idea that there is no bubble in London property.

I am afraid that Justin has good ideas in this podcast but they were lost in translation as David and he were far too frivolous and condescending to policy makers who are simply trying to clear up the mess made by the financial services, banking and investment industries over the last few years. A bit more humility and less banter would be more appropriate.

MySockBrokeHer 01 Jan 2013 , 5:33pm

No one had a problem with the banks powering the economy pre 2007... And they won't post 2013... Policy makers built an economy on financial services and massive spending... They deserve most the blame

Sianwill 03 Jan 2013 , 12:06pm

Yes, agree that policy makers in the past were wrong and will be in the future but the bankers were criminal in their negligence and many employees in financial services wrecked pension schemes, for example, while they got very rich themselves.

darrenmurphy 03 Jan 2013 , 12:22pm

I tend to agree with Sianwill, Pollyanna's like Justin are much like fast talking real estate agents of the 80's, ask them when is the best time to buy or sell, their answer, regardless of the economic situation, will alway be, 'now'. The reason is because it's in their own interests to talk markets up. Justin makes a living as a guest speaker telling businesses and the financial sector exactly what they want to hear.

The same old conservative mantras, Cut regulation, cut taxes. Simplifying the tax system. This is also code for cutting taxes on businesses. This is the same tickle down economics theory that has brought America to its fiscal knees. But which companies love to hear and are will to pay good money to hear as well.

It is clear David that you find Justin very entertaining and amusing, but rather than listening to your burgeoning bro-mance, I would much prefer to hear from economists like Professor Steve Keen of Debunking Economics blog or financial innovators like Ben Dyson, of Positive Money.

What we need is fewer fast talking, self interested, after dinner speakers, like Justin and more independent financial thinkers, who can perhaps offer a total rethinking our entire financial system.

Navislim 04 Jan 2013 , 10:13am

I'm not sure I can let the statement "This is the same TRICKLE down economics theory that has brought America to its fiscal knees" go by without comment!

If you're referring to the worlds most powerful economy as having been somehow a dangerous experiment in 'free-market capitalism' since Reagan in the 80's you couldn't be further off the mark. The levels of wealth and widespread high quality of life in the USA are practically unsurpassed anywhere else on Earth!
It's rather blinkered to suggest they're "on their knees". Per person, if we include personal as well as public debt, the US citizen owes about a third what the UK citizen does!

Most of America's problems (and ours in my opinion) stem from Government overspend NOT the free market. The likes of Barclays or Coca Cola didn't send us to war (at unparrallelled cost) around the globe or sell all our gold reserves at historic price lows or scatter expensive traffic cameras over the land only to leave half of them switched off etc, etc...

darrenmurphy 04 Jan 2013 , 10:00pm

So what you saying is "government is not the solution to our problem; government is the problem" I have a feeling I have heard this somewhere before, perhaps Ronald Reagan in the 1980's.

The "dangerous experiment" has been allowing corporations and banks to dictate government policy and creating 'too big to fail' banks. When the inevitable financial crash occurred, our champions of the free market rush to the Government with the ultimatum; bail us out or we take down the entire economy, so much for competition and letting the strong survive.

This is the fundamental problem, our financial system is broken and its champions, such as Justin continue to wave the flag for the current system, more deregulation, "simplifying the tax system" and getting in the game.

GatorTrekE 10 Jan 2013 , 12:23am

I see there is no show posted for the first full week of January and there is the cryptic "Now, I wish you all a very successful 2013, and a fond farewell, and don't forget to keep investing." ending this podcast. Has this podcast ended? I hope not because even though I'm a Yank, this podcast is one that I look forward to downloading each week.

TMFKipper 13 Jan 2013 , 10:45am

Hi GatorTrekE -- The podcast is continuing! We've just reduced the frequency as David is moving to Singapore to help launch our Fool office there -- and we of course plan to have him call in for a few podcasts once he's settled. We are transitioning in new host Owain who has a series of great conversations planned for the new year.

tolchok 19 Jan 2013 , 9:28am

theres a surprise, a stock broker recommending always being fully invested in the stock market.

apex1k 09 Feb 2013 , 6:05pm

Any chance David will start a podcast on the Asian markets - love his insights and questions and guests.

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About the show

MoneyTalk is a podcast from The Motley Fool (UK). Hosted by David Kuo, it’s a lively roundtable discussion where Fool writers and guests from the world of money thrash out the financial issues of the day.

Join us as we take an irreverent look at anything and everything to do with shares – from how to pick your first share to how to manage your own pension to what mini skirts have to do with Britain's economy (quite a lot, according to David).

From quick tips on how to tidy up a wayward portfolio to in depth discussions with industry experts, MoneyTalk tackles a different topic every week.

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About the presenter

David Kuo is The Motley Fool’s media personality. He can be heard on BBC London’s (94.9FM) Breakfast Show where he arouses listeners every weekday morning with his unique brand of financial news. He is also a regular commentator on national news programmes including CNBC, BBC News, and Sky News.

David stumbled into the world of broadcasting at the turn of the Millennium when he was invited to comment on the stock market crash. He says, “I think I stunned Londoners speechless when I said the good thing about the crash is that shares are now more affordable for people who want to invest in the stock market!”

His attitude to investing has never wavered, as he always sees downturns in the market as a buying opportunity for long-term investors.