Future Fund warns on bubbles

Advertisement

From The Australian:

The Chairman of Australia’s sovereign wealth fund has warned that record low interest rates around the world have pushed up asset prices to the point where they are fully priced and could be risky in the event of tighter monetary policy.

“Given the enormous monetary policy stimulus around the world, asset prices are generally fully priced and in some cases overpriced,” said Peter Costello, Chair of the Future fund and former Federal Treasurer.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.