Rolling coverage of the latest economic and financial news
The gold price is benefitting from the markets’ understanding that there are “no risk-free paths” anymore, says Stephen Innes, managing partner at SPI Asset Management.
Innes writes that the Federal Reserve (America’s central bank) does its best to balancing employment and prices while “juggling the torches of leverage, credit, and liquidity”, but history shows that it eventually hits problems:
The Greenspan era gave us the dotcom bubble, Bernanke the housing inferno, and Powell a decade of money-press confetti. Each time, the Fed “fixes” things not by truly securing the system, but by fiddling with the bolts—tightening a notch here, loosening a notch there—but eventually the whole machine rattles itself apart again.
In that stop-start circus, gold has been the one constant—the timepiece that keeps ticking when the clocks of equities and bonds stop. Since 2000, the S&P has returned 730%, while the Nasdaq has returned 800%. Gold has returned 1,280%.
Does this mean gold is riskless? Hardly. Like every asset, it climbs walls of worry and stumbles down staircases of fear. But unlike equities, its value doesn’t depend on tomorrow’s earnings whisper or the next policy pivot. It depends only on the persistence of human doubt. And doubt, as history shows, never goes out of style.
The Company’s immediate priority is to ensure the safety and well-being of all individuals involved and to conduct a thorough investigation into the circumstances surrounding this accident. Further details cannot be released pending the outcome of an enquiry into this accident by the relevant authorities.
Caledonia expresses its condolences to the family and colleagues of the deceased.
Continue reading…Rolling coverage of the latest economic and financial newsThe gold price is benefitting from the markets’ understanding that there are “no risk-free paths” anymore, says Stephen Innes, managing partner at SPI Asset Management.Innes writes that the Federal Reserve (America’s central bank) does its best to balancing employment and prices while “juggling the torches of leverage, credit, and liquidity”, but history shows that it eventually hits problems:The Greenspan era gave us the dotcom bubble, Bernanke the housing inferno, and Powell a decade of money-press confetti. Each time, the Fed “fixes” things not by truly securing the system, but by fiddling with the bolts—tightening a notch here, loosening a notch there—but eventually the whole machine rattles itself apart again.In that stop-start circus, gold has been the one constant—the timepiece that keeps ticking when the clocks of equities and bonds stop. Since 2000, the S&P has returned 730%, while the Nasdaq has returned 800%. Gold has returned 1,280%.Does this mean gold is riskless? Hardly. Like every asset, it climbs walls of worry and stumbles down staircases of fear. But unlike equities, its value doesn’t depend on tomorrow’s earnings whisper or the next policy pivot. It depends only on the persistence of human doubt. And doubt, as history shows, never goes out of style.The Company’s immediate priority is to ensure the safety and well-being of all individuals involved and to conduct a thorough investigation into the circumstances surrounding this accident. Further details cannot be released pending the outcome of an enquiry into this accident by the relevant authorities.Caledonia expresses its condolences to the family and colleagues of the deceased. Continue reading…
