Weighing Stronger Global Growth and Higher Interest Rates
Oct 2017 Issue
As the current economic expansion edges closer to the decade mark, there seems to be a peculiar state of affairs developing in the financial markets. Specifically, investors seem to have gone from panicking at the mere thought of higher interest rates to a “What? Me Worry?” attitude. Some look at…
Read moreGridlock Not Sidetracking Economy—So Far
Jul 2017 Issue
With the first half of 2017 out of the way, investors are wrestling with mixed signals from the financial markets. Some fatigue seems to be setting in due to the state of politics in the US, Europe, and the leading economies of Latin America. In Asia, while there has been…
Read moreThe Crude Reality of OPEC’S Cartel
Apr 2017 Issue
A little over a decade ago, some investors began to question the relevance of the US Federal Reserve. Given the reputation that the US central bank had carved out for itself since the 1980s, this was a stunning turn of events for many. Eventually, the Federal Reserve took notice of…
Read moreTesting Trumponomics Against the Realities of the Federal Reserve
Jan 2017 Issue
As we have commented in prior first quarter commentaries, we are somewhat puzzled at the amount of energy Wall Street and the financial media expend into making annual predictions each January. This time is no different. Seldom do the predictions pan out and most major political, economic and geopolitical events…
Read moreDEBT: The Economic Challenge for the Next President
Oct 2016 Issue
Shortly after winning the 1992 presidential election, some commentators said that the problems facing the country were so large that Bill Clinton might end up wishing he had lost. At the time, the US was facing a budget deficit of $450 billion which was about 4.5% of GDP and an…
Read morePush for More Stimulus Ignores Risks of Japan’s Experience
Oct 2016 Issue
This September has been an eventful month for China. Apart from defending its assertion to vast areas of the South China Sea, it also hosted world leaders at the G20 Summit to discuss ways to raise global economic growth rates. All of the political leaders agreed that they needed to…
Read moreHas Vancouver’s housing market peaked?
Sep 2016 Issue
Naveen Gopal from Pacifica Partners speaks to Business News Network’s House Money host Greg Bonnell about why China’s looming credit bubble will have a significant effect on the Vancouver housing market. Please click below to watch interview.
Read moreVancouver’s Housing Bubble Fueled by China’s Credit Bubble
Jul 2016 Issue
Many of us are under the impression that there is an endless supply of multi-millionaires in China who are intent on scooping up Vancouver properties at any price, often before they even hit the market. But the underlying source of the money does indeed have a limit, and we might…
Read moreGlobal Markets Trying to Overcome Economic Challenges
Jun 2016 Issue
The chart below looks at the return of the stock markets from the ten largest economies in the world. It shows how far those markets have dropped from their prior high (peak level) and how long ago that peak was reached. The data shows that the US equity market has…
Read moreThe Limits of Economic Experimentation
Apr 2016 Issue
Pacifica Partners Spring 2016 Quarterly Commentary: This quarter’s newsletter gets its title from the growing global trend towards the acceptance of negative interest rates as a component of mainstream economic policy. Negative interest rate policy (NIRP) is increasingly being seen as an act of economic desperation by the markets. Currently,…
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