MACRO ANALYTICS - 01-30-20 - Emerging Era of Global Conflict - Part III
- The Real Rate of Global Economic Growth is now insufficient relative to the real global debt encumbrance,
- Global stresses and incorrect policy adjustments have addressed the Symptom and not the root cause,
- The shift to Unsound Money and Fiat Currencies have placed the global system on a roadway that has historically always ended badly,
- We presently have an unbalanced and fragile global economic system that historically should have already been expected to have incurred a "stability test".
- The "Stability Test" is neither planned nor controlled. Any flaw or imbalance can trigger it.
- For the system to survive it must be self correcting or be adjusted by Financial, Economic or Public Policy adjustments
- The Era of Global Conflict will add pressures on an already fragile economic system.
PART III RECAP:
- A Fragile Economic System PLUS an Era of Global Conflict & Turmoil will lead to more Defensive Investment postures.
- Growth and Momentum investment strategies will loss their luster.
- As highlighted at this years recent Davos Conference a shift has been noted in Global Institutional Investors from Public Markets to Private Markets,
- Defensive strategies will mean a move towards Value as defined by the Exter Pyramid,
- TIPPING POINT: We have reached the Tipping Point where we now insufficient Real Collateral Growth (Wealth) to support the required increasing rates of debt growth,
VIDEO: 30 Minutes and 34 Slides