Posted on 02/21/2018 9:00:38 PM PST by cba123
Martketwatch
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(and now, for a contrarian column)
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More and more investors believe there is a free lunch.
That is, you get something for nothing. In investing, people have been getting a free lunch: Stocks (and bonds) have been rising for years without a bad turnout.
Will there ever be consequences of massive money printing by central banks, $20 trillion in national debt, a high trade deficit, underfunded social-program liabilities and higher deficits resulting from tax reform?
One would think so. In theory, gold is supposed to be a hedge against the supposed free lunch investors are enjoying. In practice, it has not worked out that way so far. The key words here are “so far.” Now the free-lunch believers are losing interest in gold. Are they right? Are there other ways to protect oneself?
Before discussing what to do now, let us explore with a long-term chart of gold.
(please see link for full article)
(Excerpt) Read more at marketwatch.com ...
This appears to be written by a guy with a stake he may be advocating for himself.
Just be aware.
The author is into a lot of technical analysis.
Depending on how reliable you think TA is,
this could be a positive or a negative.
gold is supposed to be the hedge for inflation. But its not because most of the worlds gold is held by a few countries and the world bank. None of which, want to see gold go up vs. their currency. So these countries sell gold to keep it at a stable price even though they are printing more money.
technical analysis.
Well, if you noticed that triple-double hump inverse breakout trough with the lagging hypotenuse, you know just what to do.
“...you know just what to do.”
Dance the fandango????
Growth does not cause inflation. There is always spot inflation, like housing, raw materials, etc., but they soon achieve a new equilibrium in production to match the new demand. Actually, they tend to overshoot just a bit which is anti-inflationary. Money for nothing is what causes inflation. Supply side growth tends to decrease that.
I agree with your assessment.
Unfortunately, it’s been too many years since healthy growth has occurred, and people have forgotten.
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