Japan’s Nikkei 225 is on the verge of surpassing its all-time highs of 1989, ending a 34-year drought for investors in the Land of the Rising Sun. That in itself is cause for celebration on the one hand but also a deeply flawed way of understanding how markets work – both in Japan and everywhere …
Category: Investment Destinations
investment analysis
The price of diamonds is falling, while gold remains a classic value
Both gold and diamonds are characterized by their beauty but also by their expensive cost. But beyond these common elements, for some there is a third that connects them. The fact is that many investors are now turning to diamonds. While gold has emerged throughout human history as a precious metal and currency, the emergence …
Why will the amounts invested in infrastructure increase exponentially?
Over the past decade, assets under management in infrastructure funds have nearly quintupled to $1.3 trillion. Pension funds and sovereign wealth managers have been lured by the sector’s returns, which are handsome and relatively stable. Some of the biggest funds now invest directly in these boring assets. The infrastructure-investment sector The infrastructure-investment industry took shape …
The chances of the Global Financial System collapsing
“There is no way to avoid the collapse of a system that has expanded more than it was allowed to because of manorial credit expansion” Ludwig von Mises. History shows us that we have reached our limits. History never lies, but politicians do. In a system that has expanded more than it was allowed to …
Strategic move on the chessboard of Geopolitical competition, the purchases of gold by the Central Banks
Central banks around the world are hoarding gold at a record pace, signaling a transformation of historic proportions in the global financial system. This “gold rush” is not just about a defensive strategy to preserve the value of assets from the “storms” of the global economy – it is a strategic move on the grand …
Where is the “smart money” looking for refuge while Wall Street is at historic highs?
Wall Street may be at all-time highs, but “behind the lines,” there’s a mass exodus from bonds, a frenzy for gold, and a dollar selloff. “Smart money” is looking for safe havens. And all this while the markets worldwide are experiencing, more or less, a santa rally, giving the message that everything is fine. But …
US Treasuries are the new hot trend for the investments of the Hedge funds
For much of the past two decades, most of the U.S. government debt was stashed away in the vaults of the Federal Reserve, foreign central banks, and private banks that used it as a kind of cash reserve. At the height of the era of low cost money, the Fed was hoarding $100 billion a …
Why High Investment Grade Bonds remain the preferred choice?
Bonds and especially those characterized as high investment grade remain the preferred choice for Trust Economics. With yields trading at multi-year highs – a result of interest rate hikes by central banks – government bonds offer returns far better than any deposit account (even term deposits) while missing the risk of equity investments and commodities. …
Why is the only deposit banking product a deposit, while everything else is an investment?
Borrowing rates may be rising, but deposit rates remain at zero, frustrating depositors who see inflation erode the value of their money. The average interest rate on new loans in the Eurozone was 3.85%. In contrast, the average deposit rate was 1.15%. Any attempts by the Central Banks of the ECB in the member countries …
The Alternative Forms of Investment of Small Deposits
As interest rates on traditional banking products have been virtually zero for at least three years, those who used to earn an annual income mainly through time deposits are now required to take the risk of making up for lost interest. Additional pressure is created by the rise in inflation which reduces the value of …