Kissing the Longer Run Goodbye

Posted on Perspectives

Windfall to bondholders Interest rates globally have collapsed. US 10-year government bonds now yield 2.0%, down from 2.5% at the end of Q1 2019. Incredulously, 10-year Greek government bonds are also now yielding just 2%, despite having credit ratings that are of speculative grade. These yields look meagre until alternatives are considered. Following the US […]

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Free Riders

Posted on Perspectives

Financial markets are tight. Company valuations seem rather full. Several short-term market trends, investing opportunities and pitfalls, revolve around who gets or loses their “free (or discounted) rides”. First let’s pre-load what we mean. In a nutshell, shareholders enjoy free rides when costs that could reasonably accrue to a company, are borne by others. Changes […]

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@aleexweb

Millennial Vision in Jeopardy as Pendulum Swings to Purer Strain of Capitalism

Posted on Perspectives

Advocating and adhering to a fundamentally pure strain of capitalism is what makes America stand alone. America and capitalism grew up together, with The Declaration of Independence and Adam Smith’s Wealth of Nations both published in 1776. America’s founding fathers positioned individual values and goals as paramount, and Smith laid out how owners of resources […]

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Juxtapositions

Posted on Perspectives

Here are a couple of the questions we are currently musing over at AUTHENTIC. Will President Trump step in to support Stormy markets as the central banks step back? Will the regulatory environment become stringent enough to keep internet-related share prices depressed? 1. Stormy markets spank Trump Wither to the markets? The future lies less […]

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Jawboning Central Banks

Posted on Perspectives

All too often we underestimate the connections between people and organizations around the world. 30 years ago, a fellow grad student named John (now Senior Research Advisor at the Federal Reserve Bank of San Francisco) and I, were invited to join our Supervisor, Prof. Mervyn King (subsequently Governor of the Bank of England) for dinner […]

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Who Believes in the Rule of Law?

Posted on Perspectives

Broad acceptance of the rule of law in America is crumbling before our very eyes. President Trump’s repetitious vow to uphold the “Rule of Law” made me realize it. Too many of history’s unsavoury leaders have emphatically espoused it as a ruse while abusing it the most. This revelation is deeply troubling. We so often […]

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