Much of the discussion with Wilbur Ross today focused on the potential for inflation and its implications for our portfolios. Here are the observations from Ross:
- If interest rates were to go to their 10-year average, the Federal Reserve portfolio would drop by 23% which exceeds the amount of equity the Fed has.
- Ross has been getting all of his companies to lock in long-term fixed-rate financing.
- At the end of the day the biggest bubbles in the world today will be American and German government bonds because of their trivial interest rates.
- If interest rates were to go to their 10-year average, the Federal Reserve portfolio would drop by 23% which exceeds the amount of equity the Fed has.
- Ross has been getting all of his companies to lock in long-term fixed-rate financing.
- At the end of the day the biggest bubbles in the world today will be American and German government bonds because of their trivial interest rates.
