Our Focus on Information:
Three elements relate to the contribution we plan to make to Investor Literacy:
Common Sense : Information : Simple Arithmetic
Our key research focus is on reliable information sources. Identifying the resources, incorporating them in an information framework and monitoring them.
Lessons from the Global Financial Crisis
Among Warren Buffett’s wise and apt comments is the warning when the tide goes out nude bathers will be exposed .
The 2007/8 Global Financial Crisis exposed banks, bankers, commentators, regulators, non bank financial institutions, misguided investors, leveraged speculators, gamblers and opportunists. Also not looking their best were supra national institutions including the IMF and World Bank.
Since the crisis the supra nationals have taken steps to improve the quality of their surveillance and forecasting responsibilities. They have also significantly upgraded the quality of their presentations.
The January 2015 IMF Infographic above highlights the key considerations that influence growth forecasts and illustrates how yesterday’s upside risks, such as a fall in oil prices, will become today’s downside risk if the oil price rises instead of falling.
The IMF websites are now a wealth of exceptionally well presented information and research on subjects including national fiscal and central bank monetary policies. This information supports the work I am doing on QE, Money Printing and Helicopter Money. More on this to follow by late next month.
John Katz Twitter#johnkatzgoldwatcher