Central banks and investors believed stimulus programs had created a “New Paradigm” where asset prices would always increase. Now they are starting to realise that stimulus is irrelevant against the 3 Horsemen of the Apocalypse – China’s continuing battle with the pandemic, Russia’s invasion of Ukraine, and potential for famine as rising gas/fertilizer prices mean farmers can’t afford to grow their crops or feed their animals.
Chemicals and the Economy
Everyone “knows” that the Fed will never let markets fall – and that China will never burst its real estate bubble
Our pH Report Sentiment Index has been a very reliable guide to the S&P 500 in recent years. Now it is suggesting a major downturn may be underway as the US and Chinese stimulus programmes come to an end.
‘Watch out below!’ as supply chain chaos comes to an end
“What goes up, comes down” is usually a good motto when prices start to reach for the skies. As the great investor Bob Farrell noted in his 10 Rules, they usually go further than you think. But they don’t then correct by going sideways. The charts showing US lumber prices, China coal prices and the […]
Industry now needs to step up, if Net Zero is to be achieved
Net Zero is clearly the key issue of our time. With COP26 about to start, 3 key elements need to come together to ensure success. Political leaders have to agree to meet the Net Zero targets, and to provide $100bn/year to help poorer nations fund the changes needed. But nothing will happen on the ground […]
The Fed’s stock market bubble is at risk as China bursts its real estate bubble
The US stock market bubble just keeps rising. And every investor “knows” that the US Federal Reserve will never let it burst. But the Fed can’t control the fallout from the bursting of China’s ‘subprime on steroids’ real estate bubble. Could this also mean the end of the Fed’s bubble? There is no doubt that […]
Businesses set for transformation as supply chain chaos combines with Net Zero targets
‘Business as usual’ seems a most unlikely outcome as we look forward over the next 6 months. The pandemic may well bring further trials for us to endure. We also have to set budgets for the next few years, and so we will need new strategies and business models to respond to the Net Zero […]
Pandemic leads to ‘baby bust’ as births decline in most countries
A year ago, many were suggesting the lockdowns might produce a “baby boom” as couples spent more time together. But early data suggests the world is instead seeing a “baby bust”. As Nikkei Asia reports: “Births (in December/January) have fallen between 10% and 20% in such countries as Japan, France and Spain — and even […]
A new recession era to emerge
Contingency planning has become mission-critical. The longer the coronavirus pandemic continues, the more it will expose the underlying fragility of today’s debt-laden global economy. Companies therefore have to move into crisis management mode, with a number of key areas requiring immediate attention: • Employee health and safety is the top priority. Governments are slowly waking […]
G7 births hit new record low, below Depression level in 1933
If a country doesn’t have any babies, then in time it won’t have an economy. But that’s not how the central banks see it. For the past 20 years, through subprime and now their stimulus policies, they have believed they could effectively “print babies”. Even today, they are still lining up to take global interest […]
Perennials set to defeat Fed’s attempt to maintain the stock market rally as deflation looms
Never let reality get in the way of a good theory. That’s been the policy of western central banks since the end of the BabyBoomer-led SuperCycle in 2000, when the oldest Boomer moved out of the Wealth Creator 25-54 age group and into the Perennial 55+ cohort. Inevitably this led to a slowdown in growth, […]
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