Brave New Economy

    As the Covid crisis weighs heavily on a fatigued population, financial markets move closer to euphoria; clinging to a widely accepted narrative that economies will rebound strongly when herd immunity is achieved, while interest rates will remain extremely low Not all asset classes can justify their seemingly lofty valuations. Given that prices discount … Continued

To infinity and beyond?

The Fed has officially confirmed that we are in the midst of a paradigm shift, and that it may well take another decade for interest rates to return to levels close to their historical average. To the long-term secular trends that reduce inflation – mainly demographics, globalization and digitalization – we must add the deflationary … Continued