Senior Investment Advisor
Pareto Wealth Management
Trondheim, Trøndelag, Norway
What is going on in the financial markets today?Investors confidence to governments to manage the fiscal deficit is in free fall, that's why we see all time highs in the stockmarkets, triggering a shortsqueeze never seen before. If you were to manage ex. 10 billion USD, where would you park the money? In sovereign debt with no pledge, with career politicians who have no experience on how the markets really functions to manage it? In comparison: would you like to have a dentist to do… Show more What is going on in the financial markets today?Investors confidence to governments to manage the fiscal deficit is in free fall, that's why we see all time highs in the stockmarkets, triggering a shortsqueeze never seen before. If you were to manage ex. 10 billion USD, where would you park the money? In sovereign debt with no pledge, with career politicians who have no experience on how the markets really functions to manage it? In comparison: would you like to have a dentist to do brainsurgery on you? Or would you like to park the money in the stockmarkets (blue-chip) to maintain liquidity?We're already seeing deficit challenges among several countries in EU, in Japan, USA, and there are several others, who has way to much debt compared to gdp. Quantitative Easing which startet in the US in 2010, where Japan and EU followed soon after, has now caused sovereign debt levels which is completely out of any proportions. It's not sustainable, and it seems as they will never pay off this debt - just increase - as they've done last 30-40 years or so, but now it's in need more than ever to correct to sustainable levels, and that will be a tough one. Very tough. The question is: When will it start? We're already seeing it, just look at gold, bitcoin, yield on sovereign debt and in the stockmarkets. It's almost screaming. It will be interesting times ahead, to say the least. Show less