This is a summary of the key investment insights from 6 top fund or money managers, as well as top traders, including Jim Rickards and Ronald Stoeferle (well known in the precious metals community worldwide), during the quarterly Incrementum Advisory Board.
Forecasts from Heinz Blasnik:
– Falling oil prices are more of a symptom than a cause of deflation. I believe it is clearly a symptom of declining money supply growth worldwide.
Investment insights from Jim Rickards:
– Analysts, investors and mainstream media are starting to wake up to things like currency wars, the safe haven nature of gold, etc. I think the reason for that is that until you reach the zero rate bound, you can pretend it it’s a normal cycle. Once you hit zero that pretence is gone and the currency war becomes more explicit.
– The US has a strong currency based on the view that the US has a strong economy and we can afford to let Europe and Japan to devalue. The problem with that logic is that, the US economy is not that strong.
– The FED will not raise rates. That will be a shock. Right now everyone is on one side of the boat. The whole world is set up for a rate increase.
– Why would anybody buy gold during a Deflation? The answer is, deflation is a pretty good leading indicator of inflation. Gold is also an interesting facet of the currency wars. If you think of gold as money gold can’t fight back.
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