Gross: Global yields lowest in 500 years of recorded history. $10 trillion of neg. rate bonds. This is a supernova that will explode one day
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Lord Rothschild: “This Is The Greatest Experiment In Monetary Policy In The History Of The World”
Lord Rothschild: “This Is The Greatest Experiment In Monetary Policy In The History Of The World”
Two months ago, the bond manager of what was once the world’s biggest bond fund had a dire prediction about how “all of this” will end (spoiler: not well).
Now, it is the turn of another financial icon, if from a vastly different legacy – and pedigree – that of Rothschild Investment Trust Chairman himself, Lord Jacob Rothschild, who appears to be the latest entrant to the bearish billionaire club.
We were surprised to find his summary of recent events downright gloomy, and certainly non-conforming with a stock “market”, manipulated by central banks as it may be, trading at all time highs. Here are the key excerpts:
The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale.To date, at least in stock market terms, the policy has been successful with markets near their highs, while volatility on the whole has remained low. Nearly all classes of investment have been boosted by the rising monetary tide. Meanwhile, growth remains anaemic, with weak demand and deflation in many parts of the developed world.
…click on the above link to read the rest of the article…
Lord Rothschild Warns Investors: “Geopolitical Situation Most Dangerous Since WWII”
Lord Rothschild Warns Investors: “Geopolitical Situation Most Dangerous Since WWII”
For Lord Rothschild, preserving wealth has “become increasingly difficult,” recently, as he warns, rather ominously, “we are faced with a geopolitical situation as dangerous as any we have faced since World War II.” Furthermore Lord Rothschild summarizes his thoughts briefly, eloquently, and ominously… as he touches on the global debasement of fiat currencies, disappointing growth (in light of massive monetary stimulus), and extreme stock market valuations. As Rothschild Wealth Management noted last year, equities are not well supported by current valuations, while monetary policy is limited by high debt levels and interest rates that are already close to zero… exposing equities to a potentially sharp correction.
Lord Rothschild summarizes his thoughts briefly, eloquently, and ominously…
Our policy has been clearly expressed over the years. Simply put, it is to deliver long-term capital growthwhile preserving shareholders’ capital; the realisation of this policy comes at a time of heightened risk, complexity and uncertainty. The economic and geopolitical environment therefore becomes increasingly difficult to predict.The world economy grew at a disappointing and uneven rate in 2014 after six years of monetary stimulus and extraordinarily low interest rates.
Stock market valuations however, are near an all-time high with equities benefiting from quantitative easing.
…click on the above link to read the rest of the article…
