Blain's Morning Porridge - Financial Commentary for Smart People

Global Supply Chains could be stressed by the boat jammed in the Suez Canal, and how lessons from the Pandemic offer an opportunity to rethink Global Infrastructure Spending – and mop up much of the money glut currently funding financial asset inflation!

The collapse of Greensill involved a predicable cast of unwise enablers, but it should serve as a warning to the growing number of Alternative Asset buyers on the dangers of complex deals which promise much but deliver less. Due diligence is critical in the highly illiquid alternatives sector.

Central Banks are playing the “lower for longer” interest rate card to reassure markets on growth. There are always consequences of such actions – ranging from bubbles, delusion and fraud. Eventually consequences trigger change, and reassessment – which is driving the rotation from Hope as a Strategy Tech  names into Fundamental stocks – Autos are a good example.

Consequences are unavoidable. Pension savers are crushed by interest rate repression and the changing demographics of Covid, while the deluge of debt fuelled by low rates does nothing for economic sustainability.