Central Banks

The U.S. Dollar: Should You Stick To It Or Diversify Now?

The dollar has been positively correlated with stocks for the last 4 years which is unusual. Potential FED interest rate increases don’t make international diversification a great idea right now. Any sign of a U.S. recession should be a good time to think about international diversification with emerging markets. Introduction On big news sites like Bloomberg you… Read More »The U.S. Dollar: Should You Stick To It Or Diversify Now?

“Helicopter Money” Contagion & A Weimar Germany Type Hyperinflation?

Japan is flirting with new and more aggressive monetary easing. Inflation in the U.S. might already be higher than officially reported. Further monetary easing could be beneficial if, and only if, it stays under control. Introduction We live in very interesting financial times. With low inflation, central banks are able to inject lots of money… Read More »“Helicopter Money” Contagion & A Weimar Germany Type Hyperinflation?

As The S&P 500 Reaches New Highs, Asset Inflation Continues

All factors are indicating an artificially created asset inflation. Earnings are expected to decline with economic outlook being constantly revised downwards. Gold is gaining alongside stocks which confirms that all assets are inflated. Introduction Amidst all the turmoil from BREXIT, negative interest rates and global downward economic growth forecasts, the S&P 500 has reached a… Read More »As The S&P 500 Reaches New Highs, Asset Inflation Continues

Negative Yielding Debt: A Party for Investors or Pure Stupidity?

Almost 30% of global sovereign debt comes with a negative yield. The situation is much worse in Japan and Europe than it is in the U.S. Investors should enjoy the asset inflation party while it lasts but also be prepared for the worst. Introduction Negative yielding debt seemed impossible and illogical for a long time,… Read More »Negative Yielding Debt: A Party for Investors or Pure Stupidity?