HEDGED.BIZ

A look at economics, markets, finance and the irrational human being

Singapore Property Has Bottomed. Will Rise. Beware The Rebound.

The Singapore property market has been receding slowly since 2013. It has bottomed and will rise. There are a number of factors behind this. The Singapore economy is stabilizing and will accelerate from this year onwards. No economy slides for multiple years without recovery. The Singapore economy is an uncommonly trade oriented economy with imports
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Reasons Why You Should Invest In Mutual Funds (or ETFs) Even When They Tend To Underperform.

Mutual funds have a bad name, and yet, they remain a useful investment tool. Here are some of the advantages of investing through mutual funds. They provide instant diversification. By pooling the assets of numerous investors, mutual funds allow an individual to invest an amount of capital which would be impossible to diversify if they
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Inflation and Interest Rates Positively Correlated. Low Interest Rates and Slow Wage Growth.

The ideal conditions for a country with a large national debt is high inflation. Inflation is a threat to purchasing power and can drive interest rates and debt service higher. Ideally therefore, what a highly indebted nation requires is high asset price inflation and low consumer price inflation. These are the prevailing conditions in the
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Bond Market Versus Banks. Financial Plumbing, Policy and Regulation

The banking system is the plumbing of the economy. The past 7 years have seen this plumbing system undergo extensive repair works. While repair and upgrading works are ongoing, capacity has to be turned down and alternative infrastructure employed. Regulators like the Fed have to ensure that such alternative infrastructure is created or supported. The
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Imbalance Sheets: US Debt and Fed Policy

The current public debt levels in the US have risen from 60% of GDP to over 100% since 2008. World War II saw public debt levels rise from 45% to 120%. The latest crisis control has cost the US government half of the cost of WWII. US Federal Debt as % of GDP: 2008 bailouts
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