How do we think about a world of ultra-low interest rates as equity investors? To us, interest rates are much more than determining what discount rate to use in a valuation model. At extreme levels, the rate environment introduces distortions that impact management behavior and valuation tools.
What caused the housing boom and bust of the early 2000s? Capital inflows from emerging markets to developed economies can contribute to the formation of bubbles in asset prices. Those bubbles encourage the accumulation of debt, and the deleveraging of that debt exacerbates the decline in economic activity when the bubble bursts.
"For the first time in years of quantitative publications, we argue that the usual irrelevant noise of daily fluctuations becomes now immensely informative."
Risk-taking around the 3Gs: Geopolitics, Growth, Green
The emergence of data infrastructure was a defining theme in the last decade. As the sector matures, Laurence Monnier explains why further expansion, consolidation and the development of a secondary market are likely.
Fears over “secular stagnation” appear to be overdone.
For institutional investors only
''Conversation is a Lost Art!''
“You know, I’m from a different time, young man, a dark time to you. I’m from a time that I didn’t even used to know who was on the phone until I answered the shit!”
“Stalin had an electric teapot that he operated himself. A round table, located between two of the four windows, held his multiple black telephones (made by Siemens)…”
