Hello. I’m Burnham Banks and I studied economics in the late 80s and early 90s. I’m still studying economics today and am still no wiser. This blog is a journal, a record of my thoughts and experiences. If we are destined to repeat our mistakes, we should at least repeat them faithfully. If not, then perhaps the past is a mischievous guide and we should try something new.
It is always a difficult time to invest. Are equities and bonds overvalued?
Thursday, 17 August 2017 | 12:15 pm
It is always a difficult time to invest. When markets are turbulent and falling, investors will tell you it’s a difficult time to invest. When markets have been rising on low volatility for as long as the current market has, investors will tell you it’s a difficult time to invest. Why is it such a
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Singapore Property Has Bottomed. Will Rise. Beware The Rebound.
Tuesday, 15 August 2017 | 3:19 pm
The Singapore property market has been receding slowly since 2013. It has bottomed and will rise. There are a number of factors behind this. The Singapore economy is stabilizing and will accelerate from this year onwards. No economy slides for multiple years without recovery. The Singapore economy is an uncommonly trade oriented economy with imports
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Reasons Why You Should Invest In Mutual Funds (or ETFs) Even When They Tend To Underperform.
Thursday, 10 August 2017 | 2:27 pm
Mutual funds have a bad name, and yet, they remain a useful investment tool. Here are some of the advantages of investing through mutual funds. They provide instant diversification. By pooling the assets of numerous investors, mutual funds allow an individual to invest an amount of capital which would be impossible to diversify if they
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Inflation and Interest Rates Positively Correlated. Low Interest Rates and Slow Wage Growth.
Tuesday, 25 July 2017 | 3:31 pm
The ideal conditions for a country with a large national debt is high inflation. Inflation is a threat to purchasing power and can drive interest rates and debt service higher. Ideally therefore, what a highly indebted nation requires is high asset price inflation and low consumer price inflation. These are the prevailing conditions in the
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Bond Market Versus Banks. Financial Plumbing, Policy and Regulation
Monday, 24 July 2017 | 8:24 am
The banking system is the plumbing of the economy. The past 7 years have seen this plumbing system undergo extensive repair works. While repair and upgrading works are ongoing, capacity has to be turned down and alternative infrastructure employed. Regulators like the Fed have to ensure that such alternative infrastructure is created or supported. The
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