The concept of behavioral finance is a relatively new field of study that combines psychological theory with conventional economics. We may not realize it, but we all have certain biases as investors, and that impacts the financial decisions we each make. Even the most disciplined investor may have difficulty overcoming personal biases – it’s how…Read More
– Post-2008 interest rate compression engineered by global central banks have resulted in a massive accumulation of debt by both sovereign and corporate issuers.
– U.S. corporate (non-financial) bonds outstanding have grown by 63% to over $6.3 trillion just since 2011.
– U.S. government debt outstanding has ballooned by 148% to over $15.8 trillion since 2008.
Cash is back, maybe not to the levels seen in the 80’s, but certainly providing competition to most risk assets. Keep in mind, interest rates in many parts of the developed world remain grounded at zero, so even to have this discussion is a bit of a luxury for dollar-based investors and those domiciled in the USA.Read More
Back in 1980, the United States’ share of global GDP was about 21.1%, with the U.K., Germany and France holding 13.2% in aggregate, Japan at 7.8%, while India and China represented 8.4%. Fast forward to today, and the United States’ share has grown only marginally, while the big three of Europe as well as Japan have actually declined over a 37-year period. So, where was the bulk of the growth?Read More