Hi Pointy,
as you say, the Australian data was all bad (new home sales is fake data as far as I am concerned, it will fall right off a cliff, with no-one able to borrow!), but... I assume that was magnified by Trumps comments on China etc (risk off for Australia).
Nice big fall in the AUD, which I think will continue, albeit, volatility is now back.
Did the strength in gold surprise you at all?
I assume the gold sector indicator ticked up?
I am starting to get the feeling, that whilst this is all playing out like GFC, its happening so far, that many are now front running all the outcomes... which includes being in precious metals and stocks. Which is perhaps why we are seeing less downside in the gold stocks?
I have to wonder what I do if I lived in Europe, and say, had more than 100k in the banks, yet I had to pay the bank interest to hold my capital.
Crazy stuff. All one can do is buy stocks, or.. I suppose property (but... I would not touch residential, or commercial) such as agriculture/farming..). Which in turn, is likely going to provide a backstop to stock valuations (even if they are not at all justified).
@trent3727 - I have to ask, do you have evidence to support your thesis on how fall property prices is bad for gold? or deflation?
cheers.
