How to survive the end of the credit boom

The credit glut that has sustained the global economy for the past five years is coming to an end. Japan, Europe and the US are all raising, or about to raise interest rates, cutting off the world's supply of cheap money. Unconventional fund management group, Bedlam Asset Management says this will have far-reaching consequences for three investment trends in particular...

The credit glut that has sustained the global economy for the past five years is coming to an end. Japan, Europe and the US are all raising, or about to raise interest rates, cutting off the world's supply of cheap money. This will have far-reaching consequences for three investment trends in particular, says unconventional fund management group, Bedlam Asset Management. While we don't necessarily agree with all of the group's conclusions, we still think it's well worth a read...

For most economies the last five years have been exceptionally benign, because the world has been flooded with paper. The amount of money in circulation, from banknotes to more complex money supply data has, in most countries, increased by between a half and 200%. As a consequence, given that funny money has to find a home, almost all asset prices have risen. Those of bonds, equities, housing, commodities and collectables have been propelled to unimaginable levels; in most countries, personal and corporate wealth has never been greater.

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