The Brains Trust - 2015, page-14020

Hi TM,

Yes the rebalance is in today's match for ASX listed miners, and overnight for the rest. Interesting thought re: Van Eck putting a squeeze on, but their funds are just mandated to follow the index. I don't really think it matters to them whether the price goes up or down, but I could be wrong.

To be honest I think gold is simply reacting to fundamentals. Yellen said herself in the speech that inflation has been persistently low and when quizzed about the future, she provide luke-warm responses...at best.

In terms of rate rises, she used the word "gradual about 50 times, but I don't see what is so gradual about 4 hikes in 12 months after 8 years of none. If there were any buds of inflation showing, there won't be for much longer. I would be staggered if there actually were 4 rises in the next 12 months, but can only play the ball in front of you.

I get why they've done it, but it's really a rock and a hard place decision. The writing was on the wall when Bernanke parachuted out.

Back to gold, I have no idea why it spiked yesterday. the initial reaction after a FOMC is often the wrong one. Perhaps it's big money trapping the momo crowd to liquidate into?