It insists the latter isn’t QE, but it sure walks and quacks like a QE duck.
You would think that with the U.S. taking out a top Iranian commander, threats of military action flying between the U.S. and Iran, not to mention the “Selective Service” website crashing over concerns of World War III, the markets would be in full “sell” mode. If you thought that would be the case, you were wrong.
For long-term investors, the reality that a clearly overpriced market will eventually mean revert should be a clear warning sign.
Such is just the “Pavlovian” response to more monetary stimulus.
While a decade is just an arbitrary measure of time, people often attribute certain emotional and cultural characteristics to it, such as the "roaring 20s" of the 20th century. The 20s of the 21st century are promising to mark a defining period in world history, particularly for the West.
In 2017, Germany lowered the minimum amount of gold once can purchase anonymously to €15,000, or roughly $16,760. Now, the country’s finance ministry has once again been pressured by European Union lawmakers to place more stringent limitations on individuals’ ability to purchase hard assets without documentation.
"Of course, if the Fed fails to “extinguish” whatever “blaze” they are currently battling, then we will begin to have a very different conversation about risk, positioning, and liquidity. "
Seriously, my mother was a resource of knowledge that has served me well over the years, and it wasn’t until late in life that I realized that she had taught me the basic principles for staying safe in the investment process.
"This time is never different."
After a 2018 that saw the official sector buy a record 651 tons of gold bullion, most analysts agree that the trend of voracious gold buying will continue in similar fashion over the next couple of years. According to a report by the World Gold Council, this year’s central bank purchases clocked in at 562 tons by the end of October, which could very well end up placing this year’s total figure above that of 2018.
"The median net worth of households in the middle 20% of income rose 4% in inflation-adjusted terms to $81,900 between 1989 and 2016, the latest available data. For households in the top 20%, median net worth more than doubled to $811,860. And for the top 1%, the increase was 178% to $11,206,000."