Flocking Hell

It is the time of year when the geese begin their long flight south to avoid the hellish northern European climate. In markets we are always on the look out for flocking and herd mentality. Sometimes as an investor you want to run with the herd and sometimes you want to observe the herd mentality from afar.

And it’s not just the geese who are looking for a change of scenery. Over the last few weeks some of the biggest names at British banks have announced they will be standing aside. John Varley (CEO of Barclays), Stephen Green (Chairman of HSBC) and Eric Daniels (CEO of Lloyds) have all decided to fly the coop. This has got me thinking; do these gaggle of astute top bankers, like the geese, know some inclement weather is on the way and are getting out while the going is still relatively good?

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

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