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Weighing Stronger Global Growth and Higher Interest Rates

As the current economic expansion edges closer to the decade mark, there seems to be a peculiar state of affairs developing in the financial markets. Specifically, investors seem to have gone from panicking at the mere thought of higher interest rates to a “What? Me Worry?” attitude. Some look at the lack of concern as…

Gridlock Not Sidetracking Economy—So Far

With the first half of 2017 out of the way, investors are wrestling with mixed signals from the financial markets. Some fatigue seems to be setting in due to the state of politics in the US, Europe, and the leading economies of Latin America. In Asia, while there has been a steady build of concerns…

The Crude Reality of OPEC’S Cartel

A little over a decade ago, some investors began to question the relevance of the US Federal Reserve. Given the reputation that the US central bank had carved out for itself since the 1980s, this was a stunning turn of events for many. Eventually, the Federal Reserve took notice of this and was forced to…

Testing Trumponomics Against the Realities of the Federal Reserve

As we have commented in prior first quarter commentaries, we are somewhat puzzled at the amount of energy Wall Street and the financial media expend into making annual predictions each January. This time is no different. Seldom do the predictions pan out and most major political, economic and geopolitical events that transpire are seldom foreseen.…

DEBT: The Economic Challenge for the Next President

Shortly after winning the 1992 presidential election, some commentators said that the problems facing the country were so large that Bill Clinton might end up wishing he had lost. At the time, the US was facing a budget deficit of $450 billion which was about 4.5% of GDP and an economy feeling the effects of…

Push for More Stimulus Ignores Risks of Japan’s Experience

This September has been an eventful month for China. Apart from defending its assertion to vast areas of the South China Sea, it also hosted world leaders at the G20 Summit to discuss ways to raise global economic growth rates. All of the political leaders agreed that they needed to ensure that they had to…

Has Vancouver’s housing market peaked?

Naveen Gopal from Pacifica Partners speaks to Business News Network's House Money host Greg Bonnell about why China's looming credit bubble will have a significant effect on the Vancouver housing market.  Please click below to watch interview.  

Vancouver’s Housing Bubble Fueled by China’s Credit Bubble

Many of us are under the impression that there is an endless supply of multi-millionaires in China who are intent on scooping up Vancouver properties at any price, often before they even hit the market. But the underlying source of the money does indeed have a limit, and we might be getting close to that…

Global Markets Trying to Overcome Economic Challenges

The chart below looks at the return of the stock markets from the ten largest economies in the world. It shows how far those markets have dropped from their prior high (peak level) and how long ago that peak was reached. The data shows that the US equity market has been the most stable but…

The Limits of Economic Experimentation

Pacifica Partners Spring 2016 Quarterly Commentary: This quarter’s newsletter gets its title from the growing global trend towards the acceptance of negative interest rates as a component of mainstream economic policy.  Negative interest rate policy (NIRP) is increasingly being seen as an act of economic desperation by the markets. Currently, the central banks of Europe,…
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