Welcome to my series of macro outlooks where I put together threads focused on long term perspectives for major asset classes. My goal is to provide you with a long term view that I update on a monthly and sometimes weekly basis so that you can have the means to make wise and calculated trades in the shorter term.
I have threads for assets that are typically viewed by investors and traders as market leaders. Having an idea where the market leaders are heading will give you a compass to make decisions in smaller cap assets that tend to follow.
I will do my best to keep these threads purely technical in nature.
The Gold Market
Gold is a measuring stick of the currency it is priced in, and can show us what kind of long term inflation has taken place. It can also be seen as a fear index of a broad ecosystem of investors. You may never make the leap to trade or invest in gold , however it is still important for you as an investor to know the "temperature" of the gold market.
Why Investors Buy Gold
Typically, investors will roll profits from other markets (stocks, real estate, private business, etc) into gold when one or all of the following happen:
Why Investors Sell Gold
Conversely, investors will do the opposite and sell gold when one or all of the following happen:
Low or Negative Inflation Projections
High Interest Rates (Higher than Inflation Rate)
Undervalued Stocks
Undervalued Real Estate
Overvalued Gold
I have threads for assets that are typically viewed by investors and traders as market leaders. Having an idea where the market leaders are heading will give you a compass to make decisions in smaller cap assets that tend to follow.
I will do my best to keep these threads purely technical in nature.
The Gold Market
Gold is a measuring stick of the currency it is priced in, and can show us what kind of long term inflation has taken place. It can also be seen as a fear index of a broad ecosystem of investors. You may never make the leap to trade or invest in gold , however it is still important for you as an investor to know the "temperature" of the gold market.
Why Investors Buy Gold
Typically, investors will roll profits from other markets (stocks, real estate, private business, etc) into gold when one or all of the following happen:
- Interest Rates are Low
Inflation Projections are High
Stocks are Overvalued
Gold is Undervalued
High Uncertainty and Pessimism
Why Investors Sell Gold
Conversely, investors will do the opposite and sell gold when one or all of the following happen:
Low or Negative Inflation Projections
High Interest Rates (Higher than Inflation Rate)
Undervalued Stocks
Undervalued Real Estate
Overvalued Gold
