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
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?
Slower global growth will have a much stronger impact on corporate earnings than interest rate increases. US productivity is declining and GDP growth is based on increased consumption amidst cheap financing. Corporate earnings are the source of your investment returns, and the picture is not one of growth. Introduction Amid all the fuss around interest… Read More »Forget About The November Elections – This Will Impact Your Investments Even More