As the conclusion to our Private Client Round table event with Axel Merk we wanted to review of our articles over the past month and briefly update our thoughts. Click on any of the headlines to go to the original article.
Recall Axel favored China as he stated candidly “China is not as bad as many may think” Shortly thereafter, China lowered lending requirements across the board, stepping on the accelerator, hard! UPDATE-Recent China economic reports have been better. Good Call Axel!
Only time will tell, however it appears the infinity stimulus of asset purchases are about to slow via taper later this month. If a positive outcome, it may well become apparent that Japan and the US are NOT so similar.
With inflation as the most viable way out according to Axel, future higher interest rates, tangible assets and an avoidance of Deflation may be in the cards. So far this looks to be true, however this is a longer term journey.
As Axel’s steadfast holding, gold remains a core investment that Axel said may “Never sell gold” while too optimistic for us, we certainly agree with the current possibilities.
According to Axel there is a hard/shorter term way out “Austerity” and there is an easier/inflation way out. While pulling the Band-Aid off fast hurts more, it hurts for a shorter time and will heal quicker, according to Axel. With this one, we punt, as there are so many dynamics even after the book is written (story plays out) the reasons for success may not be clear. Bottom line, MAYBE SO!
Axel repeated several times one of his favorite ways to find a bubble was “Complacency” On this we TOTALLY agree, we have long felt many market participants are being at best careless and in some cases reckless, leading to complacency. We like Axel’s analysis and will continue to remind ourselves of this in the future.
Well, there you have it. A Private Client Event and review that some thought would never go away…haha…Kidding of course.
We really enjoyed the event, the review, and again a special thanks to all that attended and the terrific questions that spurred us on during and after the event.
Thanks Very Much!
John Kvalehttp://www.jkfinancalinc.com http://www.street-cents.com 8222 Douglas Ave # 590 Dallas, TX 75225