Tina’s Back…

I know you think you understand what you thought I said

Vertical Capital Advisors Blog

March 3, 2021

Actually, TINA never left.  TINA is an acronym for “there is no alternative”.  We blogged about it in August 2016 and although we have had a world of changes since then, the fact remains that there is no alternative to low yields now just as there was no alternative then and, according to Fed Chair Jerome Powell, there will be no alternative for years to come.  The Fed minutes from their September meeting revealed their position to “keep interest rates near zero until 2023”, a far cry from the days of Fed Chair Alan Greenspan who famously said “I know you think you understand what you thought I said but I'm not sure you realize that what you heard is not what I meant” and “I guess I should warn you, if I turn out to be particularly clear, you’ve probably misunderstood what I said.”

With Congress and the U.S. Treasury adding trillions of dollars to the existing supply and the Fed pumping trillions of dollars into the economy, economists are left scratching their heads about inflation or the lack of inflation more precisely.It seems much of the flow of funds has gone into global stock markets, propelling them to the greatest highs ever with the total market capitalization of the U.S. stock market surging 34.8% to nearly $51 trillion as of December 31, 2020, total U.S. household assets topping $140 trillion and total U.S. household net worth reaching nearly $124 trillion.

This month we will enter the second year of the recovery, a year where the markets typically experience a temporary 10% pullback but end the year 10% higher. 

With the Fed, Treasury and Congress cheerleading expansionary economic policies, at least for the next three years, we are likely to see continued growth in the value of financial assets and real estate assets meaning smooth sailing ahead – unless…

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ABOUT VERTICAL CAPITAL ADVISORS

Vertical Capital Advisors is an Atlanta-area boutique investment banking firm built on creating tangible value for our clients, serving clients in just about every industry.  Our clients are both capital growers and capital allocators.  How can Vertical help your firm maximize value?

Joe Briner
Managing Director
Vertical Capital Advisors LLC
briner@verticalcapitaladvisors.com
866-912-9543 ext 108
678-591-0273