Broad Asset Classes Statistics

Broad_Asset_Classes

Statistics of Assets Impacted by Inflationary Pressures

inflation_assets

Noteworthy Reads / Events of the Week

  • - Uncontrolled Credit Growth… Seen that Before: The growth of China's debt continues to receive harsh scrutiny, in fact many parallels can be drawn between the current growth of China's debt, and Japan's debt before Japan's lost Decades. China's credit to GDP ratio grew to 187% in 2012 from 105% in 2000 versus Japan, which increased to 176 percent in 1990 from 127 percent in 1980.
  • - Does this Bull Have Room to Run?: There's continued debate (as if there ever isn't) about whether the current bull market is peaking or has room to run. Professor Jeremy Siegel sides with those having great confidence in the market. His argument is that if tapering is discontinued, it's because of a stronger economy and earnings will benefit, whereas if tapering doesn't occur because the economy is still sputtering, that's good for real asset values -- therefore equities are a win-win.
  • - The Nearest Exit May be Behind You: Successfully exiting from Quantitative Easing isn't going to be easy, and there are plenty economists who are attempting to construct methodologies that could aid the Fed in the reduction of asset purchases when the time is right. One such is Chief Economist at Nomura, Richard Koo who sees a process where the Treasury would reduce the issuance of long-term debt while the Fed simultaneously begins to unload longer dated bonds. The net effect would be reducing upward pressure on long term treasury rates that ultimately affect borrowing costs.

Benjamin is a Managing Director in Newfound’s Product Development and Quantitative Strategies group, where he is responsible for the ongoing research and development of new intellectual property and strategies. Specifically, Benjamin’s focus is in the area of exploring model applications to fundamental, economic and systemic market variables. Drawing on his years of experience in the financial services industry, he helps to ensure that Newfound’s products and messaging effectively meet the needs of investors and portfolio managers. He also plays a critical role in developing new business and client relationships.