The Japanese yield curve reveals the true state of Japanese monetary policy over the last 20 years. Has it really been ultra loose as suggested by the low short-term rate or more moderate? Examination of the Japanese yield curve also has implications for the West. Is the West following the same policies as Japan and [...]
As the USA is the biggest economy in the world; the US yield curve is an important indicator of economic conditions that needs to be monitored carefully. The US yield curve shows us how relaxed monetary policy currently is. We can infer from this the likely path of asset markets. Examining the US yield curve [...]
Economists, investors and politicians around the world rely on an accurate measure of price inflation to aid decision making; but does the CPI measure inflation correctly? Having looked into the matter, I have been struck by the inadequacy of the CPI to measure inflation and the resulting distortions in decision making that the CPI produces.
The perception of a straight linear relationship between the money supply and inflation is not backed by theory or practice. The true relationship is captured by measuring monetary growth NOT BACKED BY ECONOMIC GROWTH, rather than monetary growth alone.
What is the best deflation investment strategy? We first need to define what deflation is and assess how likely it is to take place. Although it’s relatively easy to find the best deflation investment strategy, the hard decision would be when to deploy it. Governments and central banks around the world will do almost anything [...]
We live in a period of inflation, but do you have an inflation investment strategy to take advantage of it? After defining inflation, we’ll discuss the best investment strategy to take advantage of current conditions and the dangers that may lie ahead. Flexibility is key in what are rapidly changing conditions. CPI Doesn’t Measure Inflation [...]
Many investors see the growth potential in China, but do you have a China Investment Strategy? It’s certainly important to know where you are going to invest, but equally important to know the right vehicle to invest in to maximise returns. Investment theory would say that you can capture the most return by investing in [...]
Have you ever considered an investment strategy that allows you to value an asset, right down to the stock-specific level, with little or no knowledge of the company? Well, quantitative investment strategy may be your answer. With a relatively small amount of information, you can exploit a range of simple, profitable and persistent anomalies through [...]
I’m about to discuss an investing strategy that will blow your socks off. Not only would this have been the best investing strategy in terms of returns, but it would also have been almost completely transaction cost and stress fee. It involves only two assets and only three transactions OVER 40 YEARS. Power of Simplicity [...]