Here’s the video from yesterday’s DealBook Conference. I’ll repost the summary. Video is attached below.
- Yields can’t go down anymore.
- Austerity is coming.
- Economy is running out of steam.
- QE is losing its efficacy.
- Rate turn probably finally coming late in 2013.
- The world is still in deleveraging.
- Sounding bearish: Risk premiums are likely to expand.
- It all comes down to interest rates. As an investor, all you’re doing is putting up a lump-sump payment for a future cash flow.
- In all deleveraging, you get through them by having an interest rate that’s lower than the growth rate.
- The big question is: When will the term structure of interest rates change? That’s the question to be worried about.
- Effects of QE diminishing as we do more rounds.. We’re facing austerity. And growth is flagging. This is an unprecedented risk the economy is facing. A slowdown with very little room to maneuver.
- The yield curve is certainly at the bottom. And so we’re squeezed on where they’ve gotten us in terms of.
Source: Dealbook via ValueWalk
Read Some Related Articles on Pragmatic Capitalism -
There Isn't $10.8 Trillion "Stuffed Under Mattresses" Because of QE
I have to comment on this MarketWatch piece because I've now seen a number of people comment on it claiming that consumers are choosing to hold more low interest bearing ...read more
Rail Traffic Keeps on Chugging Along
Intermodal rail traffic posted a 5.4% gain in the most recent week bringing the 12 week moving average down to 6.1%. That is a strong reading, but also a 3 ...read more
All-Time Highs in the Stock Market are Perfectly Normal
“If you think the market’s “too high” wait ’til you see it 20 years from now.” – Nick Murray ...read more
AI, Robotics, and the Future of Jobs
This is a good piece sent courtesy of John Mauldin. It goes well with this video which is a pretty scary perspective of what the robots could do ...read more