The Important Measure Will Colour The Economic Path Ahead

The velocity of money (the frequency at which money changes hands) sits near all-time lows and is again slowing, following a short-lived stimulus-induced boost in 2020.

The velocity of money reached a peak in the late 1990s before declining in response to the crash of the internet stock bubble. It…

The Answer Will Have Major Implications For Investors.

The St. Louis FED Financial Stress Index is currently trading near its pre-COVID and not far above the levels seen just prior to the 2008 Financial Crisis. The index measures the level of financial stress in markets and is constructed from 18 measures of interest rates, yield spreads and other…

Valuable Investment Insights From Magazine Covers

Identifying extremes of investor sentiment (and then taking a contrary position) has proven to be one of the most reliable techniques to generate superior long-term investment returns.

A useful gauge of sentiment has proven to be the subject of popular magazine covers, as they tend to reflect consensus opinion. Magazine…

The Growing Pension Crisis Will Impact Markets In The Years Ahead

The slashing of global interest rates to 5000-year lows has produced many consequences, not least to the pension fund industry, which is facing widespread. underfunding issues. The accompanying chart highlights some extreme examples. It is important to note that this issue is not confined to the United States but is…

These Are Challenging Years For Investors Seeking Income

An unquenchable thirst for yield has been a major trend among investors over the past two decades. Rapidly ageing populations and the steadily declining yields offered by high-grade bonds have motivated many income-seeking investors to seek shelter in equity dividends.

Treasury bonds currently offer negative real yields while challenges to…

Jonathan Baird CFA

PUBLISHER OF THE GLOBAL INVESTMENT LETTER. AWARD-WINNING MONEY MANAGER. SPEAKER ON GEOPOLITICS AND MARKETS. www.globalinvestmentletter.com

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