What is the view of gold, copper, silver and the associated miners? They are all now running very strongly - are these part of the broader equity bubble, or a trend that is likely to continue even if equities turn down?
Thank you for an excellent analysis of the situation we find ourselves in. The unknown remains how much faster the central banks can run with monetising government and corporate debt. This has to be finite.
Gold equities are one of our largest holdings at the moment. Basically its a bet that governments are going to debase their currencies. Copper and silver are more difficult. Typically industrial metals fall when global growth is low. On the flip side many are betting on government stimulus (especially in China) to offset the weakness. I'm leaning towards the view that the low growth will beat the government stimulus, but that could change.
Thanks Damien. That's probably the most rational and balanced assessment of the situation I've read for a while.
Excellent analysis and well presented.
Spot on Damien...its very hard to make sense of the markets at present, but its certainly not the first time.
Mate another excellent contribution from you with insightful analysis - as always your thought leadership is most welcome /given the macro uncertainty (COVID 19) that is affecting most sectors and our day to day lifestyle in a material way , contribution like this piece does indeed help us in dealing with the factual matrix - must catch up sometime soon - now it appears to be done at least after NSW lifts the quarantine :-)!