true dat

By: crunchgodabruinknees



The Rothschilds have been stacking up cash, gold and assets for a few hundred years, so one has to think they've go some good processes and ideas.

This Rothschilds current view as published and echo'ed since 2014

Lord Rothschild summarizes his thoughts briefly, eloquently, and ominously...

Our policy has been clearly expressed over the years. Simply put, it is to deliver long-term capital growthwhile preserving shareholders’ capital; the realisation of this policy comes at a time of heightened risk, complexity and uncertainty. The economic and geopolitical environment therefore becomes increasingly difficult to predict.

 

The world economy grew at a disappointing and uneven rate in 2014 after six years of monetary stimulus and extraordinarily low interest rates.

 

Stock market valuations however, are near an all-time high with equities benefiting from quantitative easing.

 

Not surprisingly, the value of paper money has been debased as countries have sought to compete and generate growth by lowering the value of their currencies – the Euro and the Yen depreciated by over 12% against the US Dollar during the course of the year and Sterling by 5.9%.

 

In addition to this difficult economic background, we are confronted by a geopolitical situation perhaps as dangerous as any we have faced since World War II: chaos and extremism in the Middle East, Russian aggression and expansion, and a weakened Europe threatened by horrendous unemployment, in no small measure caused by a failure to tackle structural reforms in many of the countries which form part of the European Union.

*  *  *

In 2017 LR said

In the year under review global stock markets rose to extraordinarily high levels, stimulated by low interest rates and unprecedented monetary policy initiatives of central banks, at a time when major economies of the world have been enjoying significant growth. In addition, the USA has brought in tax cuts and reduced regulation, unemployment has been lower, inflation has remained subdued and geo-political concerns have been shrugged off by stock markets.

The world has undoubtedly recovered from the global economic crisis of a few years ago. The question is whether such benign conditions are sustainable. Quantitative easing is in the course of being phased out, and interest rates are rising. Debt levels are higher – indeed significantly higher than at the time of the financial crisis of 2008. The World Bank and other luminaries are highlighting the risks to the present growth in the global economy, in particular over the medium term.

In addition, the geo-political situation remains a cause of concern: the risk of war, terrorism and cyber attacks, come at a time when American policies are highly unpredictable. Europe is enjoying a cyclical recovery but political conditions remain unsettled. Rising populist nationalism may well affect future elections. In the UK, we struggle with the problems and complexities of Brexit and a minority government.

Reflecting these concerns, your Company’s net quoted equity exposure averaged around 44%, including significant investments in technology in the USA and Asia. This was complemented by approximately 22% in private investments, 25% in absolute return and credit, and 7% in real assets, including gold. Currency holdings ended the year spread between Sterling, the Euro and the US Dollar.

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