Structurally larger deficits are changing gold from a tactical hedge into a strategic allocation After declining 30% from the peak earlier this year, gold price has staged a strong recovery of late – rising over 10% from the low. Gold’s resurgence is often explained by geopolitical concerns and inflation fears. Those forces still matter, butContinueContinue reading “The Golden Hedge”
Tag Archives: fiscal deficit
Higher Risk Premium on U.S. Assets and Fiscal Math
For the past fifteen years, U.S. assets are the only thing that matters. Foreign investors require little risk premium for investing in U.S. government bonds, which was and still is de facto safe-haven assets, and bid valuation for U.S. stocks higher. As we will discuss in the second part of this piece, comparable sector valuationContinueContinue reading “Higher Risk Premium on U.S. Assets and Fiscal Math”
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