Free market capitalism requires that markets are fair, and losses accrue to those that take the risks in return for higher rewards. Not anymore!
When it comes to your money, you have to be more than a little curious…questioning motives, industry myths, fees, past performance being replicated.
There is any number of issues out there threatening to bring the economic house of cards down, taking financial markets with them.
Bond prices have a major impact on the equity market, especially in Australia, where the ‘search for yield’ has been the driving force behind the market over the past few years.
Whatever interest rates hike Yellen hinted at during her speech in Jackson Hole this week, it would be another insignificant fraction of a percentage point.
The stock market will only collapse when inflation gets out of hand and central banks belatedly try to raise interest rates quickly to bring things under control.
The dual strategy of Quantitative Easing (QE) and punishing savers has been an abject failure.
Although Japan has an ageing society, it will take many years to run down their pile of savings. Now, compare that with Australia.
‘Buy the dip. Buy the dip. Buy the friggin’ dip.’ It worked well when investors believed the Fed could maintain a safe perimeter around markets…
The insertion of the word ‘hope’ really says it all about central banking policies these days.
Twice in the last 15 years, markets have tried to correct the mistakes and excesses of the Bubble Epoch.
We’re on the verge of a deflationary depression from which it will be hard to extract ourselves. A lot of people are going to lose a lot of money.
These policies — in fact ALL central bank policies for the last 30 years — are either a mistake or flimflam.
Japan’s economic and demographic situation IS different from the rest of the West. But what is not different is that an economy hooked on the love of debt suffered greatly .