Bloomberg reports that consumer prices rose by 2.7% in February. That’s the fastest monthly growth rate in 16 months. And it eclipses the annual yield on savings deposits of 2.25%. Savers aren’t beating inflation. And if they can’t do that, they may as well spend the money. That could ignite a rising price cycle in China that monetary authorities want to avoid.
March 12th, 2010 | Dan Denning | 7 comments | ContinuedAll Posts Tagged With: "Black Swan"
Shadow Banking System: A Murky World of Credit, Securitisation and Derivatives
Most of these are interest rate and credit derivatives. As we learned in the last two years, the big risk here is to institutions which owe and own these obligations amongst one another. In our view, the degree of interconnectedness among these obligations (they still aren’t unwound) still makes the entire global financial system vulnerable…
March 10th, 2010 | Dan Denning | 14 comments | Continued
As a Wealth Survival Strategy the Stock Market is a Death Trap
You should, by our reckoning, own a small portfolio of stocks leveraged to positive Black Swans (low probability but high magnitude events that drive a share price higher…like the discovery of a new ore body or the development of a new drug). These are the sort entrepreneurial ventures that will create new wealth.
March 5th, 2010 | Dan Denning | 25 comments | Continued
