Trading sinking inflation - Gold, Platinum, Bonds

Daniel Weston

Aimed Capital

We have been tracking disinflationary changes in the global economy for a years now. While money printing stimulus efforts has filtered through to higher prices in assets (in stocks and real estate), consumer price inflation has been on the decline. Our current view has not changed, with our monitoring of the changes in relative consumer inflation forecasts in our datasets continuing to show weakness, particularly in Europe and Switzerland. To express disinflation in a trade, we have owned government bonds in Germany and short sold Gold for more than a year. Profiting from the spread in the prices of both as Gold has fallen and Bond prices have risen. Disinflation has driven Gold lower as demand for Gold as the traditional inflation hedge has been unnecessary and Bond prices have risen as this same disinflationary pressure has pushed interest rates in the developed market world lower and lower. (VIEW LINK)


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Chief Investment Officer
Aimed Capital

Running the Aimed Global Alpha - Macro Hedge Fund. Aussie. Trader. Investor. Coder. Cricketer. Skier. Surfer. Flyer. www.aimedcapital.com

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