Kurt Godel, famous mathematician and philosopher.
Month in Review
Broad asset classes such as stocks and bonds traced sideways during the month of April, while inflationary assets such as Oil and Gold took center stage and moved higher. Meanwhile, economic data continues to be mixed, recent jobs data was disappointing while housing data continues to show a robust real estate market. In summary, the fundamentals of the economy continue to appear weak on the surface but the level of debt expansion both domestically and globally seems to be temporarily offsetting the effects of weaker demand.
Traversing the “End Game”
There continues to be a focus by esteemed market experts on the effects of a negative or prolonged zero interest rate environment. Their predictions about what will happen if the Fed continues to keep rates artificially low seem to be predominantly apocalyptic. However, most of these experts also uniformly admit that the timing of such events is difficult if not impossible to predict. [Read more…]