Climbing the wall of worry continues, by Blackfort CIO Dr. Andreas Bickel

 

Climbing the wall of worry continues, by Blackfort CIO Andreas Bickel

 

3-rate cuts? Climbing the wall of worry continues, but the Fed cannot deliver what the market participants expect. This week the ECB meets in Sintra, the bank of Japan, the bank of England and the Fed will all set their monetary policy. The Fed is probably going to indicate that cuts are likely and they will do whatever is needed to shelter the US economy. However, most likely, this will not be enough and turbulences on financial markets (bonds, equities, FX) must be expected.

Bottom-line further easing lies ahead of us. Financial repression (i.e. expropriation or transfer from wealth from the private sector to the public sector) is going to continue. It is therefore reasonable to expect that interest rates will stay low for a very long period, equities might continue climbing the wall of worries and so called “save assets” will continue to have negative yields.

Today I came across a strategist who uses (as I do) the expression “financial repression” for this phenomena and he illustrates where to invest to protect wealth.

The way to protect is to buy real assets such as REITs, equities, high yield bonds, gold and other illiquid real assets (e.g. PE, Infrastructure etc.). Family offices have also started to invest into timber, which is another way to protect wealth.

 

 

Source: https://www.linkedin.com/feed/update/urn:li:activity:6546650621183881216

Published: 17.06.2019 by Blackfort CIO Dr. Andreas Bickel

 

Disclaimer

These Market Business Reviews (further BR) are provided for information purposes only and for the use by the recipient. This document was produced by Blackfort Capital AG (hereafter «BF») with the greatest of care and to the best of its knowledge and belief. Although information and data contained in this document originate from sources that are deemed to be reliable, no guarantee is offered regarding the accuracy or completeness. Therefore, BF does not accept any liability for losses that might occur through the use of this information. The BR does not purport to contain all of the information that may be required to evaluate all of the fac­tors that would be relevant to a recipient considering entering into any transaction and any recipient hereof should conduct its own investigation and analysis. In addition, the BR includes certain projections and forward-looking statements. Such projections and forward-looking statements are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control. Accordingly, there can be no assurance that such projections and forward-looking statements will be realised. The actual results may vary from the anticipated results and such variations may be material. No representations or warranties are made as to the accuracy or reasonableness of such assumptions or the projections or forward-looking statements based thereon. This document is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. It may not be reproduced either in part or in full without the written permission of BF.

Subscribe to our social media

Media about us:

More media

Contact us

Blackfort Capital AG                            Blackfort Schweiz AG
Talstrasse 61, 8001 Zurich                  Prime Tower, 8005 Zurich
Tel. +41 44 585 7878                          Tel. +41 44 442 3202

 

[email protected]

Website Development

Terms of use

We process information about your visit using cookies to improve our website. By continuing to browse, you agree to our use of cookies and privacy policy.