The Return of the Gold Bugs

Gold has been a seriously bad investment for the past four years. That hasn’t discouraged the Gold Bugs who remain bullish on gold no matter what. They see gold as the only safe harbour and believe that its value must go up given all the madness in the world. Perhaps the recent price activity in gold marks a new dawn for the Gold Bugs?

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How could the U.S. Government's Debt Spiral not be a Problem?

A few days ago the total U.S. debt surpassed $19 trillion. It’s such a huge amount that for the sake of clarity let’s write it down in numbers: 19,012,827,698,418 (exact amount as of Jan 31st, 2016). Since 2009 the debt has risen by a staggering $8.4 trillion and during the same period inflation has basically been zero. How concerned should you be of this development?

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The Art of Sitting on Your Hands

2016 has started roughly for stocks all around the world. The chaos in China spread quickly to other continents and demonstrated brutally how interconnected the global markets are today. Oil is crashing to new lows and is currently trading close to $30. The S&P500 index had its worst-ever first week and went down roughly 10% from autumn highs. The noise is getting louder and louder and stock market investors are faced with a dilemma: should I sell everything or just sit on my hands and keep it cool.

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Where to expect blood if low oil prices are here to stay?

Unless you’ve been living on a desert island for the past 12 months you’ve heard a lot of talk about falling oil prices. Since summer 2014 the drop has been significant and nobody knows how this will continue. If oil prices remain low for a long period, it’s clear that many countries dependent on oil exports will hurt. In some countries you might even see civil unrest and outright chaos. 

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To hike or not to hike and why should you care?

Next week the Fed will decide whether or not to hike rates for the first time since June 2006. Polls by Reuters and Bloomberg show that the vast majority of market participants expect a rate hike. Any remaining doubt was erased by the positive jobs numbers a week ago. But every time there's a strong consensus about something, there's a chance for a big surprise.

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