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3/5/15

Geopolitics most dangerous since WWII, Lord Rothschild warns investors

The world now faces greater geopolitical risks than since the end of the Second World War as unemployment threatens European welfare and chaos engulfs the Middle East, Lord Rothschild warned investors in the £2.3 billion RIT Capital fund.

World GDP grew at “a disappointing and uneven rate in 2014” following six years of monetary stimulus and extraordinarily low interest rates, the chairman of RIT Capital Partners, Lord Rothschild said in the investment trust’s 2014 annual report.

He also described stock market valuations at near an all-time high with equities benefiting from quantitative easing. The value of paper money has been debased as countries sought to compete and generate growth by lowering the value of their currencies, according to Rothschild. The euro and the yen depreciated by over 12 percent against the US dollar during the course of the year and sterling by 5.9 percent.

The unintended consequences of monetary experiments on such a scale are impossible to predict, the banker says.

Read more: Geopolitics most dangerous since WWII, Lord Rothschild warns investors — RT Business

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