Tuesday, May 31, 2016

Martin Armstrong:
The Euro Will Fail
The same computer model that forecast a coming collapse
of the Soviet Union now forecasts another collapse coming
This is the end for Britain if it remains in the EU and the media will not tell the truth or expose what is going on all to save the jobs of bureaucrats at the expense of their own families (feel free to forward this article to everyone) .. The structure of the EU government is ANTI-DEMOCRATIC since it removed every possible means for the people to ever change government. The one thing they get to vote on is the EU Parliament which neither introduces legislation nor does it vote to approve anything (see BREXIT – the Movie). That is all done behind the curtain. This is a dictatorship and every newspaper should be screaming at the top of their lungs .. The Euro WILL FAIL. The mainstream press will never report what our computer has to say when it goes against the government.
Yes, the FT published in 1998 on the front page when we forecast that Russia would collapse. But that was Russia – not Western Society. Sorry, its the same computer model which is forecasting the collapse ahead."
- Martin Armstrong
link here to the article

1 comment:

Anonymous said...

Pension Funds Pile on Risk Just to Get a Reasonable Return
An investor used to get a 7.5% return by holding safe bonds. To earn that now, research finds, takes a more volatile mix

May 31, 2016 12:43 p.m. ET

What it means to be a successful investor in 2016 can be summed up in four words: bigger gambles, lower returns.

Thanks to rock-bottom interest rates in the U.S., negative rates in other parts of the world, and lackluster growth, investors are becoming increasingly creative—and embracing increasing risk—to bolster their performances.

To even come close these days to what is considered a reasonably strong return of 7.5%, pension funds and other large endowments are reaching ever further into riskier investments: adding big dollops of global stocks, real estate and private-equity investments to the once-standard investment of high-grade bonds. Two decades ago, it was possible to make that kind of return just by buying and holding investment-grade bonds, according to new research.

To make a 7.5% return in 2015, Callan found, investors needed to spread money across risky assets, shrinking bonds to just 12% of the portfolio. Private equity and stocks needed to take up some three-quarters of the entire investment pool. But with the added risk, returns could vary by more than 17%.

Some investors such as David Villa of the $100 billion State of Wisconsin Investment Board argue that at near zero, rates are artificially suppressed, and it’s creating bubbles in asset prices.

“We know the Federal Reserve is trying to trick us—we’re dealing with distortions,” said Mr. Villa, referring to how low rates have historically encouraged investors to take on more risk. “They want us to invest in building new things, but what [investors are] doing is trading existing assets at higher and higher prices.”

“We used to say bonds would be that risk protection,” said Christopher Ailman, chief investment officer at Calstrs. “Now we can’t.”