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View the article online at http://citywire.co.uk/wealth-manager/article/a760245

JO Hambro's John Wood: Bonkers!

by Dylan Lobo on Jul 04, 2014 at 11:00

Wood sees improving cars sales as anecdotal evidence of a reinvigorated consumer, although he points out one-off PPI refunds have probably played an important role in this.

‘If we look to the United States, where I am even more pessimistic about the recovery, it is noteworthy that sub-prime car loans stand at record highs.

‘If this is a recovery, it is one only being enjoyed by the very wealthiest in the UK and US societies; the rest are resorting to debt and running down their savings just to try and keep up.’

The strong run over the last three month has helped keep the Johcm UK Opportunities fund, which Wood co-managers with Citywire A-rated Ben Leyland, ahead of the pack, with a return of 42% in the three years to the end of May. This compares to a peer group average of 33%.

The top holding at the end of the month was Reed Elsevier at 5.06%, while consumer goods accounted for the biggest sector allocation at 18.5%.

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1 comment so far. Why not have your say?

CoeurDeLion87

Jul 04, 2014 at 15:48

Debt is just part of the problem. ZIRP to NIRP and possibly HIRP* may be the end game but let's NOT forget that the western world has an uncontrollable accountancy fiasco (off balance sheet that despises proper transparency); effectively an unregulated global derivatives market of some $700 trillion with countless black holes in bank and super-national balance sheets; unworkable and uncontrollable state and local debts; high personal debts especially mortgage debts that are often backed by questionable valuations; unfair and irrational tax systems that enable mass manipulation, evasion and avoidance by migrant super-rich across offshore and pseudo offshore (London) trading areas; an obsession with 'wealth' that has become overpowering and creates very little new value; an obsession with REGULATION that enables true and fair independent advice & management to be crushed in return for obtuse and untried doctrines more akin to the soviet era; political & financial organisations and systems that ignore the plight of savers and investors especially pensioners; exchanges that fail to recognise the importance of supporting national interests in the guise of local industries and job creation: and last but not least a society that approves the existence of millions within an apparatchik and bureaucratic elite who create ZERO PRODUCTIVITY (Thatcher would wince at this) and add no value whatsoever to a political, regulatory, financial and social fabric that apportions no blame to themselves but to millions of innocent and hard working bystanders. What progress is there when contrarian analysis suggests government induced statistics are often rigged, faked, abused, made up, miscalculated and where will regulators be when the inevitable #HFT induced correction/panic ensues?

Got the picture? Welcome to the new version of ELITE CAPITALISM that a large % in City & on Wall St endorse. Time and nonsense is running out. A rapid rethink of what Keynes actually said and did combined with some re-education of Mises and Hayak may just save the day but it just looks so out of control everywhere right now. Time to switch off B'berg and CNBC for Bonkers TV . Anyone got the stomach for it?

*HIRP (High Inflation Rate Predicament)

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How is regulation feeding the outsourcing trend?

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