1st Aug 2014 10:40
LONDON (Alliance News) - Athelney Trust PLC Friday said that its net asset value rose 2.5% to 224.8 pence over the six-months to end-June.
Shares were Friday untraded 285 pence.
In a statement in which he quoted a diverse range of characters, including Berkshire Hathaway Chairman and Chief Executive Warren Buffett, former UK Prime Minister Winston Churchill, Hollywood producer Billy Wilder and former News of the World Editor Andy Coulson, Athelney Chairman Hugo Deschampsneufs said that the market is exhibiting an "eerie, calm, Zen-like stillness" he finds unnerving.
"Look around the world at Syria/Iraq, Israel/Palestine, Somalia/Kenya Russia/Ukraine and Nigeria. Now China has laid claim to the whole of the South China Sea and is already in dispute with Japan, the Philipines, Vietnam and just about everyone else," Deschampsneufs said.
"Then there is the slowing Chinese economy with 107 million tons of iron ore on various docksides. QE has finished in the UK and will do so in America later this year. We have the Scottish referendum and the General Election is now just months away," Deschampsneufs added.
"And to make sure your cup runneth over the Chinese property boom is the most important factor in the global economy. In the past few years predictions that the sector is about to explode have not been borne out but it really could happen this time."
"Against that can be set that every investor is seemingly searching the world for dividend yield and the world is awash with liquidity - so that's all right then!"
"Britain must seem like a Treasure Island in a sea of troubles. Nevertheless there is a problem. Either central banks are right to be worried about the economy so wish to keep interest rates low or they are wrong and will be forced to raise interest rates faster than the market expects."
"Either way seems likely to lead to more uncertainty and volatility. Until the outlook becomes clearer investors will not want to give up on what has been a winning strategy of holding equities for capital growth and increasing income. Equity investors are reluctant 'bulls' but there seems no alternative. Hold."
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Athelney Tst.