Interesting Report by Bain & Co.

[Ben Leybovich]

Came across an interesting capital markets analysis paper by Bain & Co.  Some context:

• According to Wikipedia the total world GDP in 2013 was $75.59 trillion
• According to report, total capital markets in 2010 equaled to $600 trillion
• According to report, by 2020 total capital markets will equal $900 trillion

Takeaways - among others:

• Excess capital means more chronic lower yields. Hurdle rates are seen lower for the foreseeable future.
• This leads investors to run toward anything they feel has chance of higher returns
• This means more bubbles / busts
• This means investment need to be constructed with long horizon in mind

I think this is in many ways right on. Capital is abundant as all hell. This carries a lot of meaning going forward. Thoughts on this, guys?  @Brian Burke, @Serge S., @Rick H.