The global deflation and low economic growth are the keys to investment in 2016. The weak demand from the decelerating Chinese economy has pushed down the commodity prices, and Europe and Japan are still struggling to recover from the recession.
Even the US economy has a symptom of a slowdown now, indicating it cannot support the rest of the world economy alone.
The advanced economies have already relied on the quantitative easing, and if even the QE cannot revive the economies, what would be the cause of such a strong deflationary force? Larry Summers, the former Treasury Secretary, called it secular stagnation.
Continue reading Hedge fund managers on secular stagnation: George Soros, Ray Dalio and Bill Gross