The Credit Crunch

The Credit Crunch

The seriousness of the current financial situation is unparalleled since the 1930s, so there is little use in looking at business models of the past 15-20 years to predict what may happen next. 

After the 1987 Stock Market crash Phil Sheppard undertook major research into past collapses going back to the 12th Century with corn prices to gain insight into what happens during these downturns. This knowldege was of little use until 2006 when Phil noticed a build up of excess borrowing and asset prices in the economy, which is often a prior indicator of a major collapse in asset prices. As a result, we got our clients out of risk investments before the collapse occured. Our clients are now ideally placed to take advantage of cheaper asset prices.

Phil believes there are a lot more problems still to surface so the credit crunch is far from over.