Fri 12th Aug-New York

Always good to visit the Big Apple and observe first hand sentiment in the largest market in the world

Tthe Dow Jones hit a new all time high yesterday a far cry from the depths of depression in the GFC now some 8 years ago

A combination of cheap money and efficient technology drives the market but lack of pricing power is making sustainable profit hard to achieve in many industries

Back home we dropped interes rates soon followed by the UK to stimulate demand

I think this has now reached the point where futher falls will not help the economy and a different mare targeted approach by Government is required

Credit growth outside of housing is low in part reflecting the change in the nature and capital requirements of business

This may lead to deflation in some countries although the actual financial utility of money is increasing

In essence you may earn less but you will be able to purchase more perceived value with what you have

i will be visiting other major economies on this trip and will report back on wider global trends that may inpact us back home

Tony

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