Economy

The attempt to solve what was essentially a global debt crisis with mountains of more debt means we will have another global financial crisis – the question is when rather than if - and this will have an impact on our economic recovery and on asset prices and hence the importance of diversification in terms of geography and where and how they are owned.

The Federal Reserve lifts interest rates to slow economic growth and quell inflationary pressures. Currently, though, there's little evidence of inflationary pressures outside of financial asset prices, and economic growth is weak to say the least, so should we fear a Fed rate hike at this point? This article has the answer. Invest accordingly.

In absolute size of net foreign liabilities the U.S. leads the way but, as a share of GDP, its position is much less than that of Spain & Poland who exceed the acceptable level of 60%. Where does your country rank?

There are many out there (including myself) that believe that the next major economic downturn is dead ahead. As you will see in this article, a whole bunch of things are happening right now that we would expect to see if a recession was beginning.

The level of complacency in world financial markets is downright astounding - even stupid - and only an eventual thundering crash of the system will bring the madness to an end.

Staying ahead of inflation is hard enough but even trying to tread water, to stay even with inflation, becomes extremely difficult when you have the lead weight of inflation taxes around your neck, pulling you down.

There is certainly something to be said for being positive and thinking that anything is possible and, as Americans, optimism seems to come naturally for us. When we deny reality and engage in irrational wishful thinking, we are engaging in something called “hopium” - the irrational belief that, despite all evidence to the contrary, things will turn out for the best.

Canada’s housing bubble has been a sight to behold. Home prices only dipped 8% when the US housing market crashed. Then it re-soared. Now, across the country, home prices are 26% higher than they were at the already crazy peak in 2008. In Toronto, they’re 42% higher! There is a major drawback Canada's housing bubble beyond the fact that it will eventually crash with terrible consequences.

The latest rage is writers saying that the current economic cycle is aging and we had better watch out as the ‘bubble’ will burst soon. NONSENSE. Here's why.

Many investors think that we could never have a crash like the melt-down in 2008 but they are wrong. The 2008 Crisis was a stock and investment bank crisis - but it was not THE Crisis. That will happen when the biggest bubble in financial history - the epic Bond bubble - bursts. Let me explain.