Tuesday, July 12, 2016

Russell Napier Reveals The "Only Question 
That Matters For Global Investors"
(Where is the helicopter?)
"Now only one question matters for global investors --- Wo ist der Hubschrauber? (Where is the helicopter?) ... Investors need to remain very cautious indeed as it is in no way clear that Mrs Merkel will hand over the keys to der Hubschruaber. Should she do so, however, major changes in investment allocation are necessary as helicopter money will be raining from the skies in Japan, the Eurozone, the UK and even in the USA if President Clinton also wins the House and the Senate. This form of reflation will likely work and in due course work too much. Few things are binary in investment, but this huge decision to be taken in Berlin is the biggest binary event for investors this analyst has yet come across. The repercussions will reverberate throughout this century. This analyst would like to present you with a firm forecast as to the possibility of ‘helicopter money’ coming to the European political union. However, it is too close to call. Even if that assertion is correct, this is truly dire news for financial markets .. We will know soon enough just how large the ghost of Herr Haverstein still looms in Germany, as a failure to endorse helicopter money within a few weeks most likely means Germany is ultimately backing away from the European political union project. This is amongst the most important political decisions of the 21st century and one full of pain for global equity investors if Germany decides not to act .. If you don’t hear the rotors of der Hubschrauber very soon then what has begun is an economically painful but constitutionally necessary journey back to a common market and away from a political union. The United Kingdom would be at the centre of such a realignment of interests. While welcoming such a constitutional realignment, investors need to realise that the free movement of capital will be suspended in any such process. For years The Solid Ground has warned that this is by far the most important change that investors will face in ‘the new normal’. Meanwhile, still no sound of rotors!"
- Russell Napier
LINK HERE to the essay

1 comment:

Anonymous said...

They will just save it,

That will send interest rates even lower.

You cannot make people who feel insure spend by government decree.