Most people just consider Gold to be a safe heaven asset or a hedge. But the reality is much different. In my previous post I mentioned about how Bill Gates lost hundreds of billions with his attempts to diversify his investments and get more active. Just give it a read of you haven't already. The reason I bring this up can be summarized as this:
Take a very good look at those charts and if you have invested during those times, compare your performance along with the effort you put in.
- Morgan Stanley reports that “large economies such as Europe, Japan and China are now investing less in global financial markets, so demand for the US dollar will likely reduce. That's significant because the US is running both fiscal and current account deficits, so the country needs buyers for the bonds that it sells.”
- Goldman Sachs’ foreign-exchange strategy team believes the greenback is approaching a peak.
- Credit Agricole sees a weaker dollar after Democrats took control of the House of Representatives.
- Citi writes that the greenback “may more than reverse 2018’s rally over the medium term.” The bank predicts 12% downside versus other major currencies, citing the flattening yield curve as a signal of weaker economic growth.
- Mike McGlone, commodity strategist at Bloomberg Intelligence, says mean reversion in the dollar will be the theme in 2019, which would favor gold. “It’s unlikely for 2019 that the dollar will remain atop the list of best-performing assets… the markets appear in the transition phase of passing the bull market baton from U.S. stocks to commodities.”
These conditions are only going to help the Gold prices. Personally I'm all in on crypto. But if you are into other traditional investments or have friends/family who are into these, let them take a look at these things.
