The Cowell Rhetoric: Hitting the Fan

by | Oct 10, 2014

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As the party conference season ends and UKIP gets into Westminster, David Cowell of Myddleton Croft Investment Managers  turns his mind to more fundamental matters.

Sign on the back of another Septic Tank Truck:  “Caution – This Truck is full of Political Promises

myddleton croft


Economic activity in the U.S. manufacturing sector continued to expand in September, but the growth pace was slower. The Institute for Supply Management said its Purchasing Managers’ Index (PMI) registered 56.6 in September, down from 59 in August, missing analysts’ estimates.  According to financial data firm Markit, its final reading of the U.S. Manufacturing PMI declined slightly to 57.5 in September from 57.9 in August. U.S. construction spending unexpectedly fell 0.8 percent in August, said the Commerce Department. Analysts had forecast a 0.5- percent rise.

Concerns about the eurozone economy added to the woes on the U. S. market. Separate reports from Markit showed the eurozone manufacturing sector slowed closer to stagnation in September, with the final eurozone manufacturing PMI falling to a 14-month low of 50.3. While the final PMI reading for Germany, the region’s largest economy, slipped to a 15-month low of 49.9. Volatility is rising: The Dow has moved 1% higher or lower five times in October, already the highest monthly total since June 2013. Perhaps the lack of earnings increases is finally getting through to the ‘glass 150% full’ brigade.

Advisers’ use of risk profiling tools is “dangerous” and likely to lead to complaints, it has been claimed. Morningstar says most risk profiling tools are based on false assumptions, inadequate statistics and can lead to clients investing in unsuitable funds. We came to that conclusion many moons ago but I am willing to listen to anyone thinking otherwise.


This morning’s Torygraph business section: “Germany’s exports are falling at the fastest rate since the global crisis in 2009, raising fears of a triple-dip recession and a disastrous relapse for the rest of the eurozone; the country’s five economic institutes – or “Wise Men” – slashed their growth forecast for Germany from 2% to 1.2% next year, warning that the latest measures unveiled by the European Central Bank will add “hardly any” extra stimulus to the real economy and may be unworkable.” Who says QE isn’t around the corner?

Old Mutual is again talking to Quilter Cheviot after upping its bid to £650 million. Tomorrow – ze vorld! Unless Investec or another empire builder tops the offer.

As an adjunct, Bill Gross has said that having too many decision makers in an asset management business can be detrimental to portfolios. Even though Mandy Rice-Davies springs to mind, it’s heartening that he has joined us in thinking that small is beautiful.


With the Footsie being within a gnat’s crotchet of losing money over the last 12 months, I decided to have a look at the performance of our portfolios. Below are the charts for 12 months and from the beginning of 2008, i.e. before the recession. I find it particularly interesting that virtually no investment house is now quoting figures going back more than 5 years. Obviously there are lots of managers not having a record going back that far.

One year:

Cowell oct 10 1


Since 31 December 2007:

Cowell oct 10 2



Contact Julie for more details.

A university study into procreation and its ramifications have come to the conclusion that  condoms don’t guarantee safe sex anymore. This was due to  the fact that one of their number was wearing one when he was shot dead by the woman’s husband.




Have a good weekend

David Cowell



For and on behalf of Myddleton Croft Investment Managers

1 Woodside Mews


Clayton Wood Close


LS16 6QE

Tel:        0113 274 7700

Fax:       0113 274 7711

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