Tuesday, September 06, 2016

Tim Price - A New Approach Is Required
For Investing In 
The Age Of Financial Repression
In his latest missive, Tim Price analyzes the "permanent portfolio" from Harry Browne .. this portfolio managed to survive the stagflationary 1970s, the crash of 1987 & even the death of communism .. "But it has been dealt a devastating blow by the financial repression of the past eight years, which has effectively dismantled two of its four pillars." .. bonds are negative yielding & cash is targeted for being abolished .. the 2 that still make sense: "Stocks because there can be no investment rationale for owning negative-yielding bonds – and because stocks offer fractional ownership of real, productive businesses .. Gold because there is still every reason to expect further inflationism and monetary debauchery from the world’s major central banks. But nominal assets make no sense when nominal rates are the plaything of increasingly desperate policy makers, and heading inexorably below what was previously thought to be an absolute lower bound constrained at the level of zero."
LINK HERE to the missive in PDF

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