Maybe it may go like this:
- First the shock (where we are now);
- Then global unemployment strikes demand for goods;
- Then a financial defaults start to domino.
- Asset class deflation accompany consumer price inflation.
These waves overlap.
I don't want to say eventual recovery will be slow or fast. It maybe both depending on the what and the where. It maybe reasonable to say we will look back at this in years to come as a new growth cycle starts off but that doesn't help the situation in the near to medium term.
I don't see any major safe spots. The cash I hold will be trashed further but equities are always trashed first and circulating fiat currency has to be parked somewhere.
Gold is a consumer commodity driven by events such as the Indian wedding season and India is in lockdown. The other thing about gold is that is financially liquid. Financially distressed people tend liquidate "liquid" assets before selling anything else. Governments also have to find money to pay for what is happening and unloading liquid assets maybe attractive to some.
