Salient to Investors: Nouriel Roubini writes: Gold remains Keynes’s ‘barbarous relic,’ with no intrinsic value and used mainly as a hedge against mostly irrational fear and panic. Read the full article at http://drnourielroubini.blogspot.com/2013/07/huge-gap-between-sentiment-on-wall.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: Nouriel Roubini writes: Expect a decade ahead of very low economic growth in the US, Europe, Japan and other advanced economies, with rising unemployment and social and political unrest. Unstable disequilibrium, is the new abnormal. The economy was first anemic because of the financial crisis of too
READ MORE... →Salient to Investors: Nouriel Roubini writes: All investors should own a very modest share of gold as a hedge against extreme tail risks, but other real assets can provide a similar hedge, and those tail risks are certainly lower today than at the peak of the global financial crisis. Read
READ MORE... →Salient to Investors: Nouriel Roubini writes: Gold spikes in times of serious economic, financial and geopolitical risks, but that does not make it such a safe investment – cf sharp falls in gold prices during crisis periods of 2008 and 2009. Gold performs best in times of high inflationary risks
READ MORE... →Salient to Investors: Nouriel Roubini writes: Exiting too fast from QE will crash the real economy, while exiting too slowly will first create a huge bubble and then crash the financial system. If the exit cannot be navigated successfully, a dovish Fed is more likely to blow bubbles. Read the
READ MORE... →Salient to Investors: Nouriel Roubini writes: QE is not creating credit for the real economy, but instead boosting leverage and risk-taking in financial markets. Issuance of risky junk bonds under loose covenants and with excessively low interest rates is increasing, the stock market is reaching new highs, despite the growth slowdown,
READ MORE... →Salient to Investors: The number of hedge funds investing in gold is at the lowest level since 2010. Farhan Mumtaz at EurekaHedge said hedge fund performance declines tied to volatility and withdrawals led either to closures or a shift in strategies – the number of funds investing in gold fell
READ MORE... →Salient to Investors: Nouriel Roubini at NYU says gold may fall toward $1,000 by 2015 as the economic recovery curbs demand for bullion, there is a lack of inflation, and other assets such as equities offer better returns. Roubini said investors should have a very modest share of gold and other real
READ MORE... →Salient to Investors: Nouriel Roubini writes: For the next year or so, as long as the economy grows 1.5-2%, and you have easy money, the market can go higher. Growth is slow, earnings growth is slowing down. both top and bottom lines are not as good as they were, but
READ MORE... →Salient to Investors: William Pesek writes: Japan has taught us that slashing interest rates to zero and beyond is much easier than returning them to normalcy. In Japan, credit spreads mean little, the underlying assets on which they are based are drugged up on monetary stimulants, bank balance sheets get muddied, it
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