The Financial Futurist Newsletter - Issue #3

This Weekly LinkedIn newsletter from The Futurist Institute and Prestige Economics helps leaders prepare for the future - this week and beyond!

1. The Future of Finance

Everything seems expensive, but will it continue?

The Dow and NASDAQ hit new all-time highs this past week. Copper prices skyrocketed above $4 per pound, LME aluminum prices traded up to almost $2,150, WTI crude oil prices traded briefly over $62 per barrel, and Bitcoin hit a new all-time high near $57,500. Real estate prices are also up significantly across many markets.

This is Asset Inflation, where assets of all kinds get more expensive.

It's even happening to the lowest quality bonds out there.

Last week, the ICE BofA "CCC and Lower" U.S. High Yield Effective Yield Index was at a record low of 7.17%. CCC bonds are often defined as having a 50% chance of default - and those are the highest rated bonds in this series for "CCC and lower." See the graphic below.

The big question now:

Year-on-Year Producer and Consumer Inflation were relatively low in January 2021, but what will happen to financial markets if year-on-year inflation rises in Q2 2021?

2. The Future of the Economy

Economic reports often have a lag, but one of the most important series that is released in the same month it is collected is Consumer Confidence.

This is a really important series for the future of the economy, because over 70 percent of U.S. GDP is consumption. If consumers feel confident, they spend and the economy grows. If they don't, it's a bad sign for growth.

To learn more about Consumer Confidence, check out this LinkedIn Learning video:

3. The Future of Real Estate

New Home Sales data will be released this week. It is one of the most important housing data series for GDP, because new home sales contribute to economic growth calculations.

To learn more about New Home Sales, check out this LinkedIn Learning video:

4. The Future of Leadership

When business pressures are high, one of the most important things leaders can do is focus on costs.

But before cutting costs, business leaders and entrepreneurs need to measure spend.

I have shared a video from a recent LinkedIn Learning course about measuring spend as an important way to lead your business to success.

5. The Future of Technology

To get our most current research, The Futurist Institute shares a semi-monthly newsletter with the most important recent events for Technology, Trends, and the Future of Business. It includes 14 segments.

To sign up for all of our exclusive content, click the image below.

If you enjoy this newsletter — please share it with your friends and colleagues!

Jason Schenker

Chairman of The Futurist Institute and President of Prestige Economics.