PortfolioConstruction Conference: light at end of economic tunnel
At this year’s PortfolioConstruction Conference (August 26-27, 2009), 'guru' economist Dr Marc Faber will give his view on what the new reality is. In particular, he will explain that non-financial credit growth has now declined from an annual rate of 16 per cent in late 2006 to between 1 per cent and 2 per cent. Deleveraging is occurring among financial intermediaries — this is extremely negative for an economy addicted to credit growth.
In addition, Faber will be speaking on the US Federal Reserve, which he said could keep Fed fund rates at 0 per cent and pursue even more expansionary monetary policies. Fiscal measures can be expanded too. However, under current conditions, these policy measures may aggravate and prolong the problem.
According to Faber, the consumer is in recession and the recession will deepen. Shrinkage of global liquidity is bad for all asset prices, but “there is light at the end of this tunnel”.
Now in its seventh year, PortfolioConstruction Conference has earned a reputation as the investment conference of the year. To register, go to http://www.PortfolioConstruction.com.au/Conference.
Research papers from the PortfolioConstruction Conference will be available in the August edition of Money Management’s Technical Adviser.
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