The divergence of interest rates, bond yields, inflation, currency strength, budget deficit and total debt of countries around the world has never been bigger. We look at how the US, the UK, the Eurozone, Japan, Switzerland and India are doing in addressing paying off their debt. Continue reading “High (or hyper) inflation or long term zero (or negative) interest rates – how might the world pay its debt?”
The looming pension crisis
An aging world: Babies born in 2018 can expect to live to over 100. In 2015, there were around 600 million people aged 65 or over and that number is expected to rise to over 2 billion by 2050.
Changing demographics: There are currently 8 workers in employment for every retiree today, that number is likely to reduce to 4 workers in employment for every retiree by 2050.
Underfunding: The UK currently has $6.2 trillion in underfunded government and public-sector employee pensions. For the US that amount is over $25 trillion.
Lower bond yields: Previous funding assumed 7% bond yields, the number has been much closer to 2.5% since 2009 which has caused major deficits. Continue reading “The looming pension crisis”
US 10-year bond yield hits a 4-year high, is the US now an exception?
Greece (Moody’s Credit Rating: Caa2) is now paying 83 bps lower interest on 2-year bonds than the US (Moody’s Credit Rating: Aaa). Is the US now truly the exception? Continue reading “US 10-year bond yield hits a 4-year high, is the US now an exception?”
Underfunding, lower bond yields and changing demographics could mean you don’t get a state pension
A significant increase in life expectancy during the 20th century has been one of the greatest achievements for society. Better living standards, more nutritious diets, access to cleaner drinking water, Continue reading “Underfunding, lower bond yields and changing demographics could mean you don’t get a state pension”
Impact of interest rates in the US and the UK heading higher
What a difference a year makes, these are the current 10 year government bond yields, Continue reading “Impact of interest rates in the US and the UK heading higher”
This is how much the US dollar lost against major currencies in 2017 and 2018 (so far)
This is how much the US Dollar ($) has lost in 2017 and 2018 (till date), Continue reading “This is how much the US dollar lost against major currencies in 2017 and 2018 (so far)”
Real reasons why stock markets are soaring
Most major stock indices have recently hit all time highs. Many of the 2018 year end S & P 500 targets were hit in just 15 trading days. Continue reading “Real reasons why stock markets are soaring”
USA equities, currencies, bonds and commodities performance in the first year of the 45th President
As the 45th President of the United States of America completes his first year in office here is how equities, currencies, bonds and commodities performed in his first year of the Presidency, Continue reading “USA equities, currencies, bonds and commodities performance in the first year of the 45th President”
Should you rely on a state or government pension? The impact of underfunding, lower bond yields and changing demographics
A significant increase in life expectancy during the 20th century has been one of the greatest achievements for society. Better living standards, more nutritious diets, access to cleaner drinking water, success in the fight against infectious diseases and advancements in science have all contributed to the increase in life expectancy. Continue reading “Should you rely on a state or government pension? The impact of underfunding, lower bond yields and changing demographics”
Can Governments really afford higher interest rates?
Governments around the world have close to $80 trillion in debt. As interest rates begin to rise globally we explore if governments around the world can really afford higher interest rates. We will write about the impact of rising interest rates on individuals/households and corporates/businesses later. Continue reading “Can Governments really afford higher interest rates?”