July 2018 - Bongiorno Financial Update

What's in this issue?

• Global debt levels have reached new records.

• Countries with very high gross debt to GDP include Japan, Belgium, Canada, Portugal and Greece. The main areas of rising debt since the Global Financial Crisis (GFC) have been public debt in developed countries (with more to come in the US) and private debt in emerging countries (and of course household debt in Australia).

• Global debt is not as a big a concern as headline numbers suggest & debt to income ratios will tend to rise through time simply because of saving & investing.

• Key signs to watch though are a broad-based surge in debt along with signs of excess such as over investment, rapid broad-based gains in asset prices and surging inflation and interest rates.

We hope you enjoy this issue.

Kind regards,
ANTOINETTE BONGIORNO
LL.B. B.Com. CFP DipFP A.S.A.

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