The adolescence of the TWENTY-first century began when the global economy out of the financial crisis of 2008-2009; a situation that model the current economic system, which highlights negative real interest rates, cryptocurrencies decentralized and the revolution Fintech. Without a doubt, the decade about to end has generated profound changes; then we will be outlining.
Contents
1 – interest Loans negative
At the end of the most recent economic recession, interest rates have been in continuous decline, with the purpose of encouraging the expansion in the still we find; in the meantime, the debts of the governments have achieved interest rates below 0% for the first time in 11 years. The bonuses granted by the united States have fallen by 200 points, while those of Germany have fallen more than 400 points. Currently more than 12 billion dollars ( the fourth part of the outstanding bonds) have been causing negative performance. The because after this situation: central Banks flooding the bags with the purchases of assets, manipulation of the yield curve, and technological revolution, generating deflation.
2 – climate Change changing the vision of the investors
The weather is now an issue to take into account before you make investments, something that neither thought in the last decade. Climate change generates more severe flooding and fires, and as a result, huge crops that are lost in their entirety, while those that fail to save, don’t turn out as expected; a situation that ends up generating incalculable losses. The decade about to end has left abandoned to polluting companies, many disappeared, and others with increasingly less valued. Companies conservative the environment, such as Beyond Meat, have gained ground exponentially. According to the Global Alliance of sustainable Investments, more than us $ 30 Billion are earmarked for sustainable investment, a figure that means the double of the total was for 2011. Another sector that has been affected in a very positive way is the of an electric car. An action Tesla was worth about USD $ 17 for the beginning of 2010, today they are worth more than USD 380. Billions of dollars are intended are dumped to the development of this new trend. The industry that produces batteries today is at its best; and it is expected that by 2025, the demand of the main raw material for the production of batteries, Lithium, multiply by 3. However, the sale of electric cars has not yet found his boom; for every 10 cars, only 2 are moved by electricity; a situation that is caused by the much lower cost of the vehicles powered by fossil fuel; but this does not seem to be a problem, as climate change will not wait for nobody if you do not take the necessary measures, and the promotion of the use of electric vehicles is one of them. In this same order of ideas, we find the shale oil at a point of climax, but that is not conducive to the improvement of the climate. The new mode of oil extraction through Fracking has led to that the united States is the largest producer of oil today, with more than 12.5 billion barrels of oil produced per day, this being the double of what they produced in the country in 2010. This same situation has also become the economic power in the major oil exporter for the first time in 40 years. With shale oil being produced in quantities unimaginable a few years ago, supply has flooded the market, struggling with a demand that is expected to accentuate their fall in the years nearby, caused by the concern of the rulers by the climate change.
3 – Five companies controlling 7% of the market capitalization world
The 2nd decade of the millennium has seen, as only 5 companies have come to represent 7% of the equity Index global. This select group is comprised by: Apple, Facebook, Alphabet, INC whose principal subsidiary is Google, Netflix and Amazon. These 5 companies have a market capitalisation equivalent to more than 3.9 billion us dollars; an exponential growth if we compare it with the 100,000 million that is owned to the beginning of 2010. In terms of economic production, on the whole, they are above Great Britain and very close to that of Germany. To give you an idea the stock market performance of these large companies, an investment of USD 25,000 in Netflix at the beginning of the decade, today would be equivalent to more than USD 1 million. Today we realize how they have changed radically the way in which we receive the information, the development of the work, and as we get.
4 – Bonds with more life than the average human
In the middle of an exit controversial of the economic recession, low interest rates have left investors hungry for yields that are attractive, end up creating bonds centennial, offered by large companies, firms, and primarily, governments. In 2019 there were already a good number of bonuses centenarians, however, when Mexico brings out your bonus centennial, expiring in 2110, the interest for the same was exponential, promoting that today there are more than 1,400 bonds of this type, with a total value of roughly 170,000 million dollars. The bonus centennial of Argentina, launched in 2017, has been one of the most controversial, due to the nature delinquent and speculative of the country. Currently, an investment in the bond centenary of Argentina would amount to less than a 50% cost in your home. However, not all have been in such a bad performance, otherwise, there are poles opposite. That offered by Austria, also in 2017, has generated a yield of over 60% on leading of his short life.
5 – Cryptocurrencies that promise to change in its entirety the current financial system
While the economy was beginning to find his way out of the sharp recession in which it is found, a new currency was born, capable of revolutionizing the economic model, it was Bitcoin. The digital currency based on cryptography was born in 2009, but it was not until 2010 when he began to be a subject of interest in specialized forums. The first transaction recorded public of Bitcoin shows that had a cost of only 3 cents on the dollar; a surprising value when compared with the current of almost USD $ 7.500, even more so with the maximum of almost $ 20,000. About to finish the decade as we see the young cryptocurrencies have already managed to revolutionize business and finance; while, its decentralized nature has made that governments are not a problem for its expansion, on the contrary, have had to start taking them into account, showing us a future likely, where they are transported around the trade-in value. For the beginning of 2010, the market of this new technology was nil. 10 years later, its market capitalization amounts to more than 200,000 million dollars, and with a maximum reached in 2017 to more than 850,000 million dollars.
What awaits us in the next decade?
It is impossible to predict the future, however, it is clear that the trends outlined in the previous paragraphs will form part of the next expansionary cycle of the economy. Besides these, there are others that just have been born in the last months and years, but that will be addressed in another publication, as this will spread too much if what we do here; it is for this reason that I invite you to be very attentive of our publications, much information of value you can get in them. The following two tabs change content below. Creative editor and trader of cryptocurrencies, currencies, fiat, and commodities.