Organic Investments

 

The Era of the Millenials

We are living in an era of rapid change thanks to demographics, digital technology and the internet. Although the technology revolution process started with the invention of the computer, it has really accelerated in the last two decades, particularly since the introduction of the internet. The Millennials (today between 19 and 35 years of age) and the larger group of Centennials (under 18) comprise 27% and 33% of the global population respectively. All of them have benefited from computers in their hands from an early age. The way they think and behave is reshaping the world that their baby boomer parents created, which was characterized first and foremost by rampant consumerism. For the fi

ZIRP, NIRP and The TINA Effect

2016 has so far produced overall company sales and earnings struggling under the weight of tremendous debt levels in a sluggish global economy. It has now been five quarters in a row where earnings have declined, so we are in an earnings recession. How is it that the stock market is then trading near its all time highs? Low interest rates, even zero (ZIRP) and negative (NIRP) in some cases, coupled with the fact that There Is No Alternative (TINA). If you have savings (retirees, pension funds) and want income, given over half of the world’s bonds ($12.6 trillion to be exact) are now paying negative rates, you are forced to look to stocks and dividend yields, despite the increased risk of po

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