Currently, the price of physical gold is shooting through the roof (more so than the price of paper gold!). Is this already a sign of the beginning of a gigantic inflation as central banks and governments release a tsunami of liquidity to cope with the coronavirus crisis? When will cash become trash? “Cash is trash,” Ray Dalio said as recently as January at the World Economic Forum in Davos. But the crash of the stock markets has shown at first: Cash and liquidity are “king”. And this is likely to be the case for a long time to come. Because first comes the deflationary shock: people and companies earn less or no more money and are only kept afloat by central banks/states. But the flood of liquidity will not be enough to compensate for the deflationary shock. Inflation will only come when the coronavirus crisis is largely over and then rising demand meets massive liquidity.
A look at history may give lessons about what to expect for the stock markets in the coming days and weeks. Currently, the strong ups and downs resemble the time of the Euro crisis in […]
The stock markets have corrected sharply because of the coronavirus. Is it advisable to buy resets? Well, probably not. Why not? The Corona Virus If a committee of epidemiologists were asked to imagine a virus […]
How will the stock markets react? China, or more precisely the Hubei Province (where the city of Wuhan is located) reported a massive increase in both infections and deaths today. This might be an indirect […]