By Kris Sayce – Port Phillip Insider (Australia) –
In 2016, global debt hit a new record.
According to the Institute of International Finance (IIF), taking into account global debt from all sectors of the economy — that is, government, household and financial — in the last decade debt rose US$70 trillion. It is now a whopping US$215 trillion. That’s 325% of global GDP.
Let me spell it out for you: US$215,000,000,000,000.
That is a lot of zeros.
Developed markets are still the major contributors, owning US$160 trillion of the debt — or 390% of developed markets’ GDP.
Yet the biggest percentage increase on debt was on the emerging markets share.
The emerging markets hold the remaining US$56 trillion in debt, and in the last decade, they increased their debt by US$40 trillion. Compare that to the US$9 trillion in the decade before.
How are investors reacting to record global debt?
Well, according to Elliott Wave International, they are more confident than ever.
Since 1987, Elliott Wave has asked thousands of households the following question: Do you believe the stock market will be higher in 12 months?