We now have in place the major catalyst for a new investment theme to emerge. While central bankers reinflate the supply of money into the financial system, the markets will determine the ultimate destination. What isn’t apparent at the moment is that the investment game is about to change dramatically. Asset bubbles always lead to displacement of one asset class by another. The credit excesses that fueled the bubble created the opportunity to profit and speculate in the asset class that was inflated. As bubbles deflate, other bubbles replace them. Smart investors take profits out of inflating bubbles and redirect those profits into other assets that are cheaper. In this case the money has gone into real estate, which at this time is another asset inflating bubble that has yet to burst. In respect to real estate, it is not uncommon for prices to rise long after stock market bubbles deflate. This happened in the U.S. during the early 1930s, in Japan after the Nikkei’s fall in 1990 and now again in the U.S. after bursting the tech bubble in 2000.
As the Fed prints its way out of deflation, the dollar will continue its downward trajectory causing assets to flee the dollar in a flight to safety.
The coming financial disasters that will result from the Fed’s blundering policies will steer more money into hard assets, especially gold and silver. Marc Faber has written extensively on the curse of empires. As empires mature and peak, they then go into decline. A prominent feature of this decline is a depreciating currency, rising interest rates and inflation. Investors should now prepare themselves for this eventuality, which is the subject of part two of this essay.
Estes são apenas excertos do artigo, a minha sugestão é que o leiam na íntegra...:-) The Catalyst, by Jim Puplava
O Clubeinvest.com informa que nenhuma da informação
aqui facultada deverá ser entendida como conselho ou recomendação
de qualquer tipo de transacção ou investimento.
