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Macro Trend of the Past Decade
![samplegraph 1](/sample-chart.png)
- GFC Crisis
- US Fed + ECB in action with QEs
- ECB has continued its bond buying program till date.
- Interest Rate trend/ rising Bond Prices
- 0% Japan for past decades
- Negative rate in Europe since 2014
- USA 10 year reached ~1.5% by 2019
- ROW rates lowered to 2-6% band (mainly in Asia)
- Bankruptcy and consolidation in many sectors
- Almost 3 Trillion Dollars of retail savings moved from Equity to Bond markets in USA over decade
- Large institutional participation in Equity markets across globe through MFs/ ETFs
- Huge appreciation in valuation of growth stocks and under/ declining valuation of value/ asset based businesses.
![samplegraph 2](/MacroGraph.png)
- Very low level of capacity creation across globe, barring China
- Austerity measures in some countries in Europe
- Deflation in Commodity Prices
- Unprecedented COVID-19 Crisis and still continuing
- Lock down across globe (first time) beginning March 2020 following China
- Unemployment across globe, with USA touching -20%
- USA Fed swung into action with massive bonds buying program (Corporate + Government)
- US Government’s massive stimulus in terms of direct payment to citizens, to the tune of almost US$ 2 Trillion, leading to rise in retail savings
- Fed lowering rate to ~0% for long foreseeable future
- Europe, Japan and other Governments followed the path to protect their economy
- Speedy approval of vaccines and implementation of vaccination across the globe
- Slow and measured opening up of economic activity by all Governments, keeping close eye on COVID-19, mutation, death, etc.
Recent Posts
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Macro trend of the past decade
April 2, 2021
Category
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Economics
April 2, 2021