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www.prerequisite .com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 1

20th May 2016, RVTV Presentation Charts

USA Quantity of Liquidity(YOY%) 

Velocity of Liquidity 

(YOY%) 

 Total System Liquidity(Quantity + Velocity, %YOY) 

 US 10yr

Bond Yield 

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www.prerequisite .com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 2

20th May 2016, RVTV Presentation Charts

China 

Quantity of Liquidity(YOY%) 

Velocity of Liquidity 

(YOY%) 

 Total System Liquidity

(Quantity + Velocity, %YOY) 

CNY/USD 

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8/16/2019 20160321 Daniel Want Prerequisite Rvtv

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www.prerequisite .com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 3

20th May 2016, RVTV Presentation Charts

China + USA

(combined liquidity) 

Quantity of Liquidity

(YOY%) 

Velocity of Liquidity 

(YOY%) 

 Total System Liquidity

(Quantity + Velocity, %YOY) 

Global system proved ‘     resilient ’      due to

China & USA combined liquidity support 

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8/16/2019 20160321 Daniel Want Prerequisite Rvtv

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www.prerequisite .com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 4

20th May 2016, RVTV Presentation Charts

 US 10yr Inflation Indexed Yield

(Real Yield)

‘Step up’  in Real Yields

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8/16/2019 20160321 Daniel Want Prerequisite Rvtv

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www.prerequisite .com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 5

20th May 2016, RVTV Presentation Charts

www.prerequisite.com.au/research  

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8/16/2019 20160321 Daniel Want Prerequisite Rvtv

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www.prerequisite .com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 6

20th May 2016, RVTV Presentation Charts

9-year ‘low range’ bound 

 US Dollar Index

(DXY)

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www.prerequisite .com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 7

20th May 2016, RVTV Presentation Charts

US Dollar Index 

1yr yield less annual 

CPI rate of change 

 10yr yield less annual

CPI rate of change 

10yr inflation indexed

Bond yield

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www.prerequisite .com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 8

20th May 2016, RVTV Presentation Charts

Simplistically:

USD = +Real Rates -US Liquidity (Qty +Velocity)

Gold = -Real Rates + US Liquidity (Qty +Velocity)

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www.prerequisite .com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 9

20th May 2016, RVTV Presentation Charts

US Dollar Index 

Gold (USD) 

1yr yield less annual 

CPI rate of change 

 10yr yield less annual

CPI rate of change 

10yr inflation indexed

Bond yield

www.prerequisite.com.au/research  

8/16/2019 20160321 Daniel Want Prerequisite Rvtv

10/14

 

www.prerequisite.com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and i ssuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

20th May 2016, RVTV Presentation Charts

-Real Yields 

Liquidity 

Effect on Gold 

Stable to falling 

Growing (with velocity wobble)  

Rising

Real yield spike 

 Velocity offset by  Qty

= resilient liquidity growth 

Resilient Gold

Falling

Growing (with velocity wobble)  

Rising

Falling

 Velocity >  Qty

= Liquidity collapse 

Stalled

Real yield increase

Transition to growth

(but problematic velocity)

Falling

= 

Stable/sideways

Slowing growth into negative

(due to persistently falling velocity) 

Weakening bias

Quantity of Liquidity 

(YOY%)

 Velocity of Liquidity

(YOY%)

 Total System Liquidity

(Quantity + Velocity, YOY%)

US 10yr Bond

Real Yield, lhs

 

Gold (USD), rhs

 

USA

Understanding the regime progression in Gold...

www.prerequisite.com.au/research  

www.prerequisite.com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 11

8/16/2019 20160321 Daniel Want Prerequisite Rvtv

11/14

 

www.prerequisite .com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 11

20th May 2016, RVTV Presentation Charts

GDP / M2

(Conventional velocity measure)

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www.prerequisite .com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 12

20th May 2016, RVTV Presentation Charts

Euro Area Liquidity 

Quantity of Liquidity

(YOY%) 

Velocity of Liquidity 

(YOY%) 

 Total System Liquidity

(Quantity + Velocity, %YOY) 

 Euro Area 10yrSovereign Bond Yield

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www.prerequisite .com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 13

20th May 2016, RVTV Presentation Charts

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www.prerequisite .com.au/research Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia.  All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date ofpublication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. 14

20th May 2016, RVTV Presentation Charts

Copyright © 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved.

Past performance is not indicative of future results. Neither Prerequisite Capital Management Pty

Ltd nor any of its employees, or any person(s) or firm who is represented within this publication shall

have any liability for any direct or consequential loss sustained by anyone who has relied on the

information contained in this publication. At no time does Prerequisite Capital Management Pty Ltd

make specific recommendations for any specific person, and at no time may a reader, caller or

viewer be justified in inferring that any such advice is intended. This publication has been prepared

by Prerequisite Capital Management Pty Ltd on behalf of itself and its affiliated companies solely forthe general information

 

of clients or potential clients of Prerequisite Capital Management Pty Ltd.

It is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The

views expressed are the views of Prerequisite Capital Management Pty Ltd through the period

ending at the date of publication and are subject to change at any time based on market and other

conditions. References to specific securities and issuers are for illustrative purposes only and are

not intended to be, and should not be interpreted as, recommendations to purchase or sell such

securities. Prerequisite Capital Management Pty Ltd (ABN 27 141 060 933) is a Corporate

 Aut horised Represent ative of AIW Dealer Serv ices Pty Ltd (ABN 59 153 322 420) AFSL 414256. 

Contact: Darren Brind (CEO) 

darren@prerequisite.com.au 

+614 98 671 505