'Bond-King' Bill Gross' latest letter again laments zero/negative interest rates, and labels "land, gold, and tangible plant and equipment" as "favoured assets." There was no love at all for financial assets: "I don’t like bonds; I don’t like most stocks; I don’t like private equity." Gross warned investors that they... Show More
Steen Jakobsen, Chief Economist at Saxo Bank, says tightening monetary policy has created a 60% chance of a US recession in 2016. Contrary to popular understanding, he says monetary policy has been tightening since 2014. A counter-intuitive example of this comes from negative interest rates. “I live in one of... Show More
Bill Gross, former PIMCO boss, and manager of the $1.4 billion Janus Global Unconstrained Bond Fund, warned central bank policies that pushed trillions of dollars into bonds with negative interest rates will eventually backfire violently. “Global yields lowest in 500 years of recorded history,” he wrote Thursday from the Janus... Show More
“We’ve never in history, run sophisticated economies, with sophisticated financial systems, through declining populations. It is a truly unique event.,” said Mark Burgess from Jamieson Coote Bonds at the recent Livewire Live investor forum. “ affects all asset classes in strange ways… House prices don’t work when demographics don’t work.”... Show More
While some central banks are experimenting with negative interest rates as a way to stimulate their economy, some regions like Japan and Europe have not yet been successful, which could lead to possible unintended consequences. My colleague and fixed income investment specialist, Eric Delomier, discusses the negative rates and why... Show More
It’s been a fairly quiet week on Australian markets, but with the US rates decision next week, could it be the calm before the storm? Only time will tell. For investors in iron ore stocks, it has been a volatile week, closing up a massive 18.6% on Monday, then dropping... Show More
One of the many issues confronting the global economy is that the savings glut in the advanced economies as households deleverage. The glut is now so large that it has sparked a deficiency in aggregate demand. This is resulting in two key effects. Not only is advanced economy growth lower... Show More
One of the major contributors to the declines in equity markets in 2016 has been the sell off in banking stocks. The selling has been widespread and Australian banks have not been spared. A subdued growth environment and the prospect of exposure to bad debts in the resources industries have... Show More
If anyone had thought that the Chair of the Federal Reserve Janet Yellen was going to calm the markets last week, they couldn't have been more wrong. And that proves what Saxo Bank's Chief Economist, Steen Jakobsen and Saxo's head of FX Strategy, John Hardy, have been saying for some... Show More
US Federal Reserve chair Janet Yellen told US lawmakers that negative interest rates were "not off the table" as a possible tool in the future if, against her expectations, the American economy turned down. London-based Fidelity Global Focus Fund portfolio manager Amit Lodha warns that from an equity investor's perspective,... Show More