What I learned from Dr. Michael Ivanovitch – 28 April 2010
- Outlook for World’s Financial Markets
- The Impact of EU’s Sovereign Risks on Turkish Economy
- Bank lending too low
It want recovery unless it runs the other way
- The interest rates won’t go up any time soon
- Potential GDP growth 2%
- Potential GDP growth 3%
- Banks’ capital base have eroded, therefore trying to rebuild back
- Potential GDP growth 6%
! Savings rate UP Trade surplus UP; it is not related to currency
- Transition to a stable and sustainable growth.
- Errors of monetary policy are possible, especially in countries whose economies are just booming out or are in the very early stages of recovery.
- Investors should favor asset markets where economies are already on the recovery path, and where stimulus packages are being reviewed.
- Equities and commodities are our preferred asset classes. Fixed-income instruments will experience a serious downward correction.
- The Euro will be intact and a cease of using Euro will not be the case.