Thursday, July 21, 2016

Why Steve Forbes Was Surprised 
By Gold’s Rally 
Discussion with Steve Forbes; gold has seen its biggest rally in decades, while the U.S. equity markets have also risen to multi-year highs. However, the chairman of Forbes Media said he wouldn’t get too excited about what’s happening in the U.S. stock market. "The stock market reflects big companies… I don’t see much room for the market to go up until earnings turnaround .. Earnings have been in a plateau for a year and half…small cap companies have not done very well compared to big cap companies. That’s the sign of a mature phase of a bull market .. Gold is an insurance policy against turmoil and governments misbehaving towards the currency. When you see the price change, that’s people’s perceptions of currencies .. I was surprised by the rise of gold this year given the Fed’s attitude in terms of starving credit to small and new businesses."

No comments: