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Strategies & Market Trends : US Inflation and What To Do About It
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To: Rarebird who wrote (1296)1/3/2020 1:21:58 PM
From: RetiredNow   of 1504
 
That's true, but what's different this time is that Russia and China and most central banks are acquiring gold at an unprecedented rate. Why are they doing this? What are they preparing for? I don't know the answers to those questions, but I do know they are hoarding. QE will continue in 2020. The CBs don't know how to stop, just like a heroin addict doesn't know how to stop. So at some point, that will be pushing on a string in terms of its ability to stoke more economic and asset growth. I think we may already be at that point.

Here's a thought experiment. Both you and I believe QE and low rates benefit Trump. But what if it doesn't? What if monetary largesse stops working to drive the stock market up and yields down? And what if companies and people stop borrowing more, because they have plenty of cash on hand to do everything they need? I wonder. Could 2020 be the year that QE no longer works? Already lowering rates below the zero bound has been found to be counterproductive and so CBs are backing off from that. I think QE will have serious consequences this time around and CBs will back off from that as well. Gold will do well in the lead up to that, is what I believe. So yes, I'm thinking short term...in 2020, gold will do well. Beyond that, I'll re-evaluate after November.
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