my small gold position is down 2% this morning on the good jobs news, but still up 13%.... this is better than the down 20% for last several years.kambo said:
All investment markets are distorted by huge liquidity injections, this new normal can not last forever, so eventually the tide will go out (and we can see who isn't wearing trunks). Gold should be OK if/when inflation finally returns.
Many of the semi-permnanent changes influenced by COVID social distancing will cause higher restaurant prices that should be inflationary. The massive unemployment bonus payments, means workers will require higher pay to return to many previously lower paying jobs.
Of course the free money spigot will eventually run out, but the swamp is spending like drunk sailors for years and unlikely to slow down now with an election right around the corner. .
JR
