With an increase in Shanghai Stock Exchange volatility and some exciting stuff happening on the macro front i.e. Greece, things are no longer as boring as they have been for a while. I will only make one comment regarding economic jawboning.
Everyone is talking about an increase in interest rates in the US later this year, even Janet Yellen. However the IMF warns strongly against doing so as the economic recovery is simply too fragile, with recent economic GDP & consumer numbers backing this up.
This is precisely what my point has been, despite market analysts repeatedly reporting the strength of the US economy and the global recovery for that matter. What is clearly evident with the Greece default rerun is that using Zero Interest Rates does nothing more than provide “life-support”, very rarely does the patient come off life-support and function normally. To achieve normalicy one needs a viable prognosis and then the appropriate medication. We have not witnessed this in terms of the global economic recovery. All we have seen is zero interest rate life support.
On a happier note, the Freestyle fund has taken poll position on an absolute return basis with much lower volatility. Still early days but things are looking like they may get quite exciting in the coming months.