Playing a Profits Recession

Published on
September 24th, 2019
Duration
32 minutes


Playing a Profits Recession

The Expert View ·
Featuring Ken Grant

Published on: September 24th, 2019 • Duration: 32 minutes

Ken Grant, founder of General Risk Advisors, says that asset prices have been buoyed by extreme monetary policy since the global financial crisis, and will continue to float higher. He argues that even if the "real" economy slows substantially, the "capital" economy will continue its historic expansion for the next few quarters. Grant also provides investors with a game plan β€” namely, be wary of the credit markets, and buy the dips. Filmed on September 12, 2019 in New York.

Comments

Transcript

  • DS
    David S.
    26 September 2019 @ 13:25
    With Federal debt levels massively increasing and tax cuts used for corporate buybacks, the Laffer curve simply does not work and should be relegated to the dust bin. DLS
  • sr
    stephen r.
    26 September 2019 @ 09:29
    There is no shortage of financial assets as one person financial assets is another person liability ! I would agree that people feel compelled to buy equities due to negative yielding assets, although this thinking is pervasive and this bull market is based on that premise alone, the singular most greatest example of 'this time is different' in history. Th
  • RH
    Robert H.
    26 September 2019 @ 04:45
    Bang on Mr. Grant. Just how is stimulation supposed to work when the demographics +/= marketplace is shrinking? EU doing it for what 10 years? Hello!! Japan same. No one watching? How's it working for them, this oxygen tube of QE? The policy makers really think they can save the economy putting band-aids on when widdle boy faw down. They are absolutely retarded. They should hope to be dead when this castle gets stormed. Have a great day; A. Citizen
  • SU
    Shakeel U.
    25 September 2019 @ 17:53
    Brill πŸ˜€
  • KA
    Kelly A.
    25 September 2019 @ 11:32
    He makes a compelling argument for upside between now and election --a well known phenom. The end is near, it seems, but in the meantime, money can be made. I liked his provocative thoughts.
  • CH
    Connor H.
    25 September 2019 @ 05:03
    He's a BTFDer.
  • jg
    john g.
    25 September 2019 @ 02:30
    This guy is living in a dream world.
  • JW
    Jason W.
    24 September 2019 @ 21:51
    Wow you need to get an hour long interview of Ken. Superb interviewee πŸ‘πŸ»
  • so
    steve o.
    24 September 2019 @ 14:44
    Extrapolating the past few years into the future. This would have been a good interview 5-6 years ago.
  • TS
    Taranvir S.
    24 September 2019 @ 13:09
    Everyone (including mainstream media) is asking for more fiscal stimulus and at the same time, we say gov't debt is all time high (so what are they are borrowing for lol). The fact is that structurally, we need changes in our political/social/economic systems to solve real world issues.
    • DR
      David R.
      24 September 2019 @ 16:22
      The MMTers profess that govt debt (and spending) should be much higher. Wishful thinking by inexperienced amateurs who are too young to have worked in this industry throughout the 1970s. It was hell and will be again, except for a short time to begin before it unravels just like then.
  • NL
    Nicholas L.
    24 September 2019 @ 13:04
    It seems that every time I hear about negative yielding debt around the globe, its a much larger amount. What’s the number that really matters? This is the first time I’ve heard a two as the the first digit.
    • DR
      David R.
      24 September 2019 @ 16:31
      IMHO the number that really matters is total debt including off-balance sheet debt (unfunded pensions, medicare, military, medicaid, vets, etc). This figure depends on numerous assumptions such as future interest rates, returns, inflation, etc. For the US, the most reliable number is in the range of $265-trillion to $300-trillion. Princeton Economics calculated it this summer using the lower interest rates and rising inflation at $420-trillion. Whatever, it's 13-20 times as much as the US economy. In other words, massive US govt insolvency and currency failure loom in the future. It's similar in every developed nation except for a few tiny ones. Politicians have promised waaaay more than can ever be possibly provided. And yet some are promising more, citing MMT as the way to fund it.
  • JK
    Jay K.
    24 September 2019 @ 12:35
    Deflation. Wages stagnating. Negative yielding debt. Cats eating dogs.
  • TB
    Timothy B.
    24 September 2019 @ 12:01
    This is uncharted territory, in a world of negative yields, it seems those equities with the most debt loads will earn more profits by going even further into debt, this is mind boggling.