1. Is The “New Normal” Finally Over November 12, 2014 Anderson Square, 4th Floor P.O. Box 10324 George Town, Grand Cayman KY1-1003 345-949-3022 scott.elphinstone@fivecontinents.ky

2. 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.

3. There was a lot of debt

4. The Crisis Explained

5. The Response - Fed Funds Rate

6. The Response - Fed Money Printing

7. The Aftermath – World GDP

8. The Aftermath – US GDP

9. The Aftermath - Cayman GDP Source ESO.ky

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

11. 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

12. Is it Over?– China GDP

13. Is it Over? – European GDP

14. Is it Over? - US Household Debt

15. Is it Over? - US Unemployment rate

16. Is it Over? WTI OIL Price

17. Is it Over?- Income Disparity

19. Is it Over? – Asset Inflation

20. 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

21. Implications for Marketing Targeted and Cheap!