BFI Infinity recently published its latest issue of the InSights newsletter, published on a quarterly basis. In it, Daniel Zurbrügg contributed an excellent piece regarding the outlook of BFI Infinity, in view of the coronavirus threat and other critical factors affecting financial markets. Below you will find a condensed video version of his analysis.
No one knows the future. I only know a few things: first, that the market hates uncertainty, and the advent of a plague about which too little is known. It is probably true that the panic is all out of proportion to the eventual damage it will do. But the markets spent all of recent days panicking, as have most people.
Modern Monetary Theory, or “MMT”, has been getting a lot of attention lately, often celebrated as a revolutionary breakthrough. However, there is absolutely nothing new about it. The very basis of the theory, the idea that governments can finance their expenditures themselves and therefore deficits don’t matter, actually goes back to the Polish Marxist economist, Michael Kalecki (1899 – 1970).
With the markets being dangerously addicted to its accommodative policies, the Fed (as well as the ECB and the BOJ) are back at injecting liquidity into the market. They have truly backed themselves into a corner, trying desperately to keep it all together, and to not let the global house of cards come tumbling down…
Trump-bashing appears “in vogue” in most parts of the world – and certainly in the U.S. Democrat constituencies and mainstream press. However, whether you like the man’s hairdo or not, some of the factual economic statistics produced during this administration can be considered impressive, or at least promising.
The past year was exceptional from an investing point of view. After a very difficult fourth quarter in 2018, with heavy losses in global equity markets, the rebound that started early in 2019 lasted much longer than many expected. In fact, despite the recent volatility caused by increasing fears of the coronavirus spread and the political tensions between the U.S. and Iran over the killing of Qassem Suleimani, the bull run in...
As the Chinese economy continues to be disrupted by the outbreak of the novel coronavirus and parts of China’s economy come to a virtual standstill, it would be unrealistic to expect that the Chinese gold market, the world’s largest, will not be adversely impacted.