"There is a huge difference between believing in gold and believing in the gold business... To the gold business, deflation is a killer... but, to a true goldbug, either inflation or deflation suggests the monetary world is off its axis. "
"An argument could be made that the wealth effect from QE is not evenly distributed, and that low discount rates mean savers suffer from an erosion of income."
"It is hard to see any policy alternative, other than just letting the whole system crash. Therefore, we can expect quantitative easing to return with a vengeance, not only to recapitalise the banks, but to cover escalating government deficits."
What could cause the reversal of the most popular trade of the past decade to finally occur and drive an actually rotation into “cheap” and out of “expensive” within Equities? Here are two reasons.
As a trade war between the U.S. and China simmers and the gold price remains undervalued this might just be the time that China starts to increase their gold reserves once more
Traders are in a good morning this morning, focusing on a sugar high number that will be a one-time boost, while again ignoring the risks from the crashing yuan.
