27. June 2016 16:50
Is this Risk On or Risk Off? First, in financial and economic terms, this is not another 2008. Then the markets stopped working. Today, global markets are shocked, but not frozen. Second, the UK is financially stronger and more robust than it was in 2008. Third, the implications of Brexit are likely greater for the World outside of the UK, than for Britain itself. Should we buy or sell? Longer term equities possibly look a tad better because Brexit will shift policy focus towards more use of fiscal policy and away from the demerits of QE. Greater use of fiscal policies will ultimately worry bond markets. Geopolitics will come to the fore. All-in-all, gold looks increasingly attractive. The liquidity cycles have been telling us that 2016 is the year of gold and commodities. That view continues.