Perhaps just a coincidence, but two of our recent posts have come together beautifully in a recent chart from Deutsche Bank depicting and supporting our view of how gold prices have moved almost in lock-step with the growing universe of negative-yielding bonds.
There is no guarantee that any historical trend illustrated above will be repeated in the future, and there is no way to predict precisely when such a trend might begin.
We think there is more to it. To remind everyone of the main culprits driving both trends – we believe central banks around the world are likely embarking on a new round of monetary easing, absence of meaningful fiscal policy responses to global slowing and fears that we are getting ever closer to the day of reckoning.
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The views presented herein are those of Validus Growth Investors, LLC and are provided for informational purposes only. The information is current as of June 2019 and is based on the economic and market conditions as of this date. The information is not intended as a discussion of the merits of a particular offering and should not assume that any discussion or information provided herein serves as the receipt of, or as a substitute for personalized investment advice from Validus Growth Investors, LLC or any other investment professional.
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