Wealth
Briefing/Tom Burroughs/8-5-2016
“Finally, we continue to overweight gold bullion as a long-term hedge
against significant monetary debasement, which seems an inevitable ultimate
consequence of ever more aggressive central bank policy. Especially now that
experiments in direct monetisation of fiscal spending no longer seem to be
anathema to policymakers.” –– Luca Paolini, Chief Strategist, Pictet Asset
Management, Geneva, Switzerland
MK note: Paolini echoes a familiar theme among money
managers these days – particularly those with a world, rather than
ethnocentric, mind set. We have commented consistently on the number of
world class money managers who have come out publicly in favor of gold
ownership over the past year or so. Last week the individual considered
by many to be the top bond money man in the United States – Bill Gross – told
investors to avoid stocks and bonds and buy gold instead. “Real
assets,” he said, “such as land, gold and tangible plant and equipment at a
discount are favored asset categories.”
Also see: What
has the smartest investors so spooked?
“So when a cluster of high-profile hedge fund and long-biased managers go
out of their way to give dire warnings about the U.S. equity market with
stocks sitting at or near all-time highs, any sensible investor needs to pay
attention. These are people with access to information that most market
participants could only dream of having. Former heads of state and
central bankers, private intelligence operatives, senior government
officials, the best consultants in any industry… It is like having an
all access pass to anything, anywhere, any time.”
