It is a fantastic interview that echoes many of the things I have been saying about Japan for quite some time.
Thematically, the bottom line is the total credit market debt-to-GDP globally is 350 percent. It’s 200 trillion dollars’ worth of debt against global GDP of roughly 62 trillion.
It’s of our belief you are going to continue to see lower global growth, and you’re going to see certain countries hit the proverbial end-point or wall where they have to restructure their debt. We’ve been particularly dogmatic with our view there.
Investing around that particular idea is very difficult. As Dick Mayo [Chairman, Mayo Capital and Founding Partner of GMO] said today, it’s actually the most difficult time in the world to invest in his lifetime, and I would echo his comments. Investing in the environment that I am describing to you is the single hardest thing to do as far as investing is concerned over the last few decades. (more)