Five Oceans Asset Management

OVERVIEW Underlying dynamics of the global economy The backdrop to the global equity markets October 2006 Over time economies have been driven by the advancements in technology. In recent years, the IT revolution has brought about a leap in productivity. These technolgical advances have triggered a change in business processes, which in turn has increased competition. A new level of efficiency, brought about by the increased level of productivity, has meant that companies are now equipped to navigate beyond national boarders. In this environment profitable companies are those that have strong distribution channels, quality products and competitive prices. Under these circumstances, companies operating in a number of economies connect via global logistic systems, exchange rates and mobile financial capital. This has created issues for central bank policies. Monetary Policy has also played a role in smoothing the reallocation of resources from traditional to modern industries. This has created an environment of low interest rates which have also had the impact fo driving productivity. But, how long will it last? Back to Thought Pieces

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