This post is a guest contribution by Niels Jensen*, chief executive partner of London-based Absolute Return Partners.

It is not universally appreciated, but the last 25-30 years have, in general, been staggeringly good to most investors. Technology induced productivity enhancements combined with favourable demographic trends, minimal government involvement, accommodating labour unions and the globalisation of international trade have all contributed to a benign inflation environment and strong economic growth, leading to arguably the biggest bull market of all times in both bonds and equities.

So much for the good news. The long lasting tail winds have finally turned around, and we now face, and will most likely continue to face, head winds for years to come. The list is long, but some of the most important factors contributing to this change include:

The demise of the Anglo-Saxon consumer driven growth model:

The Anglo-Saxon consumer is exhausted; he

This post provides links to some interesting articles I have read over the past few days that you may also enjoy.

• William Poole (Financial Times): A market solution to secure banks’ future, May 21, 2009. Would bankers rather face the discipline of subordinated debt or much heavier Washington regulation, including opaque and changing rules?

• The Economist: That kitchen-sinking feeling, May 20, 2009. Japan’s woeful economic peformance may mean that things can’t get any worse.

• Michael Pettis (Financial Times): Asia needs to ditch its growth model, May 19, 2009. The basic assumption that implicitly underlay Asian development – that American households had an infinite ability to borrow and spend – has been seen as false.

• Ambrose Evans-Pritchard (Telegraph): Asia will author its own destruction if it triggers a crisis over US bonds, May 18, 2009. Japan beware, crashes

This post is a guest contribution by Niels Jensen*, chief executive partner of London-based Absolute Return Partners.

It is time to move on. Not that the crisis is over, by no stretch of the imagination. But it is not going to make one iota of difference if I join the blame game bandwagon. It is what it is. Allow me instead to focus my energy on what is likely to happen next. That is more productive and definitely more useful.

A can of worms We are dealing with a rather large can of worms. The lid is off and the worms are all over the place. Let’s focus on what these worms might be up to. For all the