By Nigel Somerville | Wednesday 5 August 2020
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
I said the other day that the gold market looked like it was ready for a correction. We’ve had a big run, everything is overbought etc etc – the gold market needs to correct, to blow away the froth. The problem has been that every time it looks as though a bit of selling will settle in, more bad data emerges and off we go upwards once again. Yesterday the Fed was effectively suggesting inflation is good and interest rates will stay put at zero, Nancy Pelosi was suggesting that $600 a week cheques would not disincentivise people from returning to work, the Democrats and Repulicans are apparently homing in on another stimulus package (funded by the Fed’s money printing machine) and apparently the Fed thinks that your average American will invest in US government bonds for ten years at an interest rate of 0.5%, which is well below the inflation rate. Meanwhile the US dollar resumed its slide and gold broke through $2000. Real world vs fantasy-land.
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