Juggling Dynamite

Danielle was a guest with Jeanhy Shim and John Northcott discussing some of the week’s major business stories.  Here is a direct video link.

Danielle was a guest with Jim Goddard on Talk Digital Network talking about recent developments in the world economy and markets.  You can listen to an audio link of the segment here.

You can see more here on The Great Disruption–Rethinking energy, transportation and food & agriculture.

This chart is further to the comments on Canadian real estate risks.  Canadians have levered all-in and then some at the highest prices and lowest interest rates ever.  Happy October!!

Household wealth is more concentrated in equities today than at any time in the last 50 years, including the 2000 tech bubble top.  This is great for firms who make the richest fees issuing, trading and holding equities in client portfolios.  As shown below since 2005, from Bank of America, 65.3% of client assets under management are in stock-based products today compared with a peak of 56% at the cycle top in 2007.

Unfortunately, for the holders/clients, this record exposure to stocks (S&P 500 below) comes at a time when the securities are priced to deliver negative returns over the next decade, as they were, and did, from the cycle peak in 2000.
This will be super hard on financial plans and prompt many to reduce spending and/or work longer than they presently imagine.  Asset bubbles are no free lunch or dinner.