Category Financial Crisis

The End of Age of Speculation

Markets are full of noise about everything from inflation, risk, leverage and politics, but the reality is we are approaching “Peak Speculation”. It doesn’t mean a crash in imminent, but that investment strategies and approaches are going to have to factor in a new reality, and be far more suspicious, questioning and smart as a new reality takes hold. The consequences of QE and other factors that fuelled the speculative age could be with us for decades.

Low rates? Don’t worry.. What could possibly go wrong…?

Central Banks are playing the “lower for longer” interest rate card to reassure markets on growth. There are always consequences of such actions – ranging from bubbles, delusion and fraud. Eventually consequences trigger change, and reassessment – which is driving the rotation from Hope as a Strategy Tech into Fundamental stocks – Autos are a good example.