Through this piece, I wanted to share some of my knowledge on inflation as a driver of asset returns, and its outlook. Driver of Returns: On a fundamental level, inflation affects the price of future consumption, and thus how we behave as consumers. If the price of something is expected to rise in the future,Continue reading “Driver of Returns: Inflation”
Category Archives: Economic Outlook
Pre-COVID Slowdown
Context: I wanted to work on this piece in order to provide context for the economic slowdown that was occurring before COVID-19 ever occurred. While the virus and the subsequent shutdown of the US economy are why we had such a poor Q/Q Q2 GDP number (-32.9%!), it would be wrong to assume that thisContinue reading “Pre-COVID Slowdown”
The Implications of ZIRP in 2020
For clarification, ZIRP refers to a central bank’s policy of setting their short term interest rates at 0 to 25 basis points. It represents one of a central bank’s strongest tools to spur economic activity, and is reserved for extreme circumstances, e.g., The Great Depression, Great Recession, and this Coronavirus shutdown in 2020. For aContinue reading “The Implications of ZIRP in 2020”
11/26/19
I was on LinkedIn and came across this post from PIMCO. It summarizes how their asset allocation will be altered, given the expected economic slowdown in the United States. Essentially, in times like this, they value higher quality securities and a more defensive position. Here is the link to the post: https://www.linkedin.com/posts/pimco_investing-markets-recession-activity-6605108132886786048-qxz7
