Global Outlook – Mad, Mad, Mad, MAD World: News In Charts

October 12, 2017

Alarm bells are ringing for economic fundamentalists such as Fathom Consulting.

Courtesy of Fathom Consulting via Thomson Reuters

Asset prices look increasingly out of step with fundamentals, and in some cases they look downright bubbly. And other geopolitical developments are similarly alarming. One might even describe them as…

Mad:

Equity prices in developed economies, and specifically in the US, are more than one standard deviation higher than their long-run average in relation to nominal GDP.

Mad:

The NASDAQ has again played its part, posting an even greater degree of fundamental overvaluation than the S&P 500. Its degree of overvaluation in relation to nominal GDP is now close to its dotcom bubble high.

Mad:

Government bond prices across the developed world are at all-time highs. Bond prices have been increasing consistently since the 1980s, with a series of global shocks driving that move.

Total central bank assets across the developed world now stand at over $14 trillion, having increased by about $10 trillion since the recession …

This is genuinely uncharted territory: here be dragons!

Full article by Fathom Consulting can be read on Thomson Reuters

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Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth. 

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