Gold saw investors return to recognize it as a safe haven. That is because the only other option appears to be the US Dollar. Investors may like to diversify as they run out of emerging markets and Euro but fundamentals remain worrisome for unsure investors. So a safe quiet, temporary parking into yellow metal until equity markets get on with the bullish run.
Turn around may be in once the markets have full factored in energy price falls. After all, net of net, fall in energy prices will benefit the world economy; or at least most economies. So it should be a great impetus to growth. The fears of the impact of energy companies not investing seem exaggerated. Any input cost reduction is good for the consumer. His real income goes up.
Where ECB failed to act, Saudi Arabia's oil tactics may have done well. Turn around should logically occur in New York; as bulls return to the Wall Street to claim that the energy price drop has been factored in. The pick up in the equity markets will commence on this wisdom dawning and it is a matter of time. USA looks good to lead from the front.
What we are seeing in Europe is Creative destruction. If you are inefficient, you have to make way. What is applicable for companies is also applicable for countries.
Views expressed without any risk or responsibility.
Turn around may be in once the markets have full factored in energy price falls. After all, net of net, fall in energy prices will benefit the world economy; or at least most economies. So it should be a great impetus to growth. The fears of the impact of energy companies not investing seem exaggerated. Any input cost reduction is good for the consumer. His real income goes up.
Where ECB failed to act, Saudi Arabia's oil tactics may have done well. Turn around should logically occur in New York; as bulls return to the Wall Street to claim that the energy price drop has been factored in. The pick up in the equity markets will commence on this wisdom dawning and it is a matter of time. USA looks good to lead from the front.
What we are seeing in Europe is Creative destruction. If you are inefficient, you have to make way. What is applicable for companies is also applicable for countries.
Views expressed without any risk or responsibility.
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