Convergence of Economy, Investment, and Key Industry Sectors

Worldwide, as central banks continue to inject liquidity through stimulus methods of Quantitative Easing (QE), global financial markets appear at very high levels. It also appears that this trend will continue as long as it is permissible by bond markets and bond vigilantes. End-of-the-day, economic growth cannot ever solely occur by “printing money” and propping-up stock markets.  Hopefully, stagflation and/or hyperinflation do not emerge as a resultant. While stakeholder debates continue whether to raise taxes or not, the reality of raising interest rates will eventually set-in as and when inflation and it its impact takes definitive hold with respect to the convergence of economy, investment and key industry sectors.

Source: Pat V. Sonti, Mentor & Author

Current focus is on mitigating deflation and ensuring the banking system is held in tact while credit contraction is the mainstay in the real-world. Meanwhile, various asset class values as well as consumers’ disposable income decline with direct impact on Gross Domestic Product (GDP) of developed, emerging and developing countries; result is macroeconomic distortion vs. microeconomic destabilization.

Regardless of private sector or public sector, history continually reminds that this downward spiraling cycle is fueled by capital not being allocated properly and effectively. As a result, global investors are scrambling to find ways to preserve the intrinsic value of their various asset classes while their respective national currencies are being debased and, thus, investors are resorting to traditional precious metals across-the-board.

There must be immediate focus on a urgency for mandatory “renaissance and regeneration” of the value chain and life cycle of products and services critically supported by Research, Design, & Development thereby incubating new technologies to enter the commercial markets. This in turn leads to creativity, invention, innovation and entrepreneurial start-up companies embarking on creating new wealth across all socio-economic strata on a sustainable basis; “A rising tide lifts all boats”.