Ben Bernanke popularized the term “global saving glut” in March 2005 when speaking to the Virginia Association of Economists in Richmond, Va. In his statement, he argued that several forces had created a high volume of global savings and that this “saving glut” helped explain the many years of historically low yields. And that was long before the Fed and its fellow central banks, through their coordinated actions, engineered the virtual extinction of interest rates!
Definitive statements tend to separate “legends” from “losers”. “Legends” live in lore as women or men with the clairvoyance and courage to make a bold (and correct) prediction in a time of uncertainty. Think of Winston Churchill’s stirring speech: “Men will still say, ‘This was their finest hour.’ ”
The relative absence of borders limiting participation in global markets has enabled internationally-minded investors to find opportunities that domestic-minded investors might miss. Much like the Silk Road, which opened opportunities to traders throughout Asia, Europe, and Africa, those willing to invest internationally have generally been rewarded for doing so.
In early April, one of the “wise
guy girl” talking heads released a video on the rise of robots where she claims that within a decade, we could be looking at dramatically different non-farm payroll data. In fact, she even quotes a Forrester study that suggests net-net, for every one job created, fifteen jobs will be lost.
In one of the most surprising plot twists in e-commerce history, technology giant Amazon.com piloted a physical bookstore concept in late-2015. Dubbed Amazon Books, the retailer, which started as an online store to compete against the likes of Barnes & Noble and now-defunct Borders, entered the same brick-and-mortar space that many argue they are helping destroy.