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To safeguard against a depression, invest in the unlevered world
The worst case scenario today is a depression as in the 1930s. In such a scenario the non-levered places will be safest. Emerging markets will be by far the safest countries to invest in.
Jerome Booth By Jerome BoothWhen the price of a good rises people generally want less of it and the market self-equilibrates. Neo-classical economic theory assumes the same is true of asset prices. Milton Friedman consequently famously argued for not having a central bank as asset prices would self-equilibrate.
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