Archive | August, 2016

So-So Asset Returns a Sign of the Future?

22 Aug

If the below GMO forecast is correct, investment returns over the next seven years will be dismal across nearly all asset classes, as none of them are expected to be near their historical rates of return.   These indications point to a heavy overvaluing of markets, and scarcity in terms of which asset classes have [...]

Debt as a Destroyer

15 Aug

Debt can be good in moderation. ┬áBut it can also be dangerous and addicting, much like a drug. I’ve seen it up close and personal too many times. People can’t withstand the temptation to “buy buy buy,” even if they can’t afford it. Reversing debt addiction is tough, just like kicking a drug. A sign [...]

Weaker and Bleaker Economy Ahead?

8 Aug

They’re coming. Who, you ask? Aliens? Locusts? Zombies? No. Far worse. They’ve already taken Japan and Europe. I’m talking about negative interest rates! And they’re coming for the U.S. from the east and west! As central banks and monetary policy dominate almost any economic discussion, interest rates dip lower and money becomes easier to obtain. [...]

New Girl on the Economic Block

1 Aug

Recently, we’ve seen all-time highs in the stock market AND record-setting lows in the bond market. That’s happened only once in the last 40 years, so it’s not exactly a normal occurrence. It was in 2013, mid-recovery and served with a healthy dose of Quantitative Easing. These are unusual times. U.S. Treasury yields fell to [...]