Is The “New Normal” Finally Over November 12, 2014 Anderson Square, 4th Floor P.O. Box George Town, Grand Cayman KY

What is the “New Normal” The “New Normal” was a term coined by investment manager Bill Gross. It describes a world where economic growth is significantly lower due to the response by both individuals and governments from the aftermath of the credit boom of the early 2000’s He felt that growth would be low for the foreseeable future due to a combination of deleveraging, de-globalization and increasing regulation.

There was a lot of debt

The Crisis Explained

The Response - Fed Funds Rate

The Response - Fed Money Printing

The Aftermath – World GDP

The Aftermath – US GDP

The Aftermath - Cayman GDP Source ESO.ky

The Aftermath - Cayman GDP Source ESO.ky “Rollout” Policy Uncertainty of tenure High cost to employers Technology Policies of other Countries

Is it Over? The regulatory blizzard is showing no signs of slowing Tax regulation FATCA UK FATCA OECD Automatic exchange of tax information Financial Services Regulation Dodd Frank Basel III Stress Tests AIFMD Local Regulation Directors Regulation Beneficial Ownership Registry? Immigration Reform? The cost of regulation is like taxation

Is it Over?– China GDP

Is it Over? – European GDP

Is it Over? - US Household Debt

Is it Over? - US Unemployment rate

Is it Over? WTI OIL Price

Is it Over?- Income Disparity

Is it Over? – Asset Inflation

Conclusion The “New Normal” is with us for a few more years Deleveraging still ongoing in our major trading partner Regulatory burden increasing and is an attempt to limit global competition in financial services Concentration of wealth gains in the top 1% is creating asset inflation not economic growth

Implications for Marketing Targeted and Cheap!