Update- Investing in a deleveraging World Borrowing and leverage have been with us since before ancient times but the amount of leverage employed by the Developed World had reached an unprecedented scale by 2007. Debt is with us and we must not only live through it but also invest through this deleveraging cycle. There have only ever been three solutions for a sovereign to deal with excessive debt and they include: repaying the debt; inflating it away; or defaulting. The brief attached goes through some recent historical examples with implications for assets classes going forward. This is why when investing it is so important to buy quality assets at reasonable or better still discounted prices. At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me via ‘Contact Us’ at www.newealth.com.au or to call me on +61 2 9267 2322.
21st-November-2011 | 
