Brave New World: Is gold the answer to offset corona damage to portfolio?

Ritesh Jain, a Dalal Street veteran, trend watcher and Global Macro Investor, captures global macro investment opportunities and economic, business and financial trends with charts and commentaries in this space.

While investors are currently banking on the Fed’s numerous monetary injections to fuel asset prices higher, there is a real possibility the Fed is simply “filling in a hole” that is growing faster than they can fill it"

How to ruin your banking system… The Fed should go negative next week, former President of the Fed Bank of Minneapolis Kocherlakota says. To fight a deepening recession, it should take US interest rates below zero for the first time ever.

GOLD/SDR has just broken out of 9-year base

US M2 is up 95% in last six weeks.
If sustained…….This can be highly reflationary

Look at year three, even if things stopped worsening. You drink 90 bottles, up a little over 10%, but you stop destocking, so you buy 90 bottles; up 80% YoY. That’s an 80 per cent increase, without restocking.

Remember the Great Depression. Deflation came first with the massive shock. Then came the policy-induced inflation with a lag. The vagaries of eroding productivity once demand stabilizes. Buy gold!- David Rosenberg