Monetary Trends

Moneyweek is as the name suggests a weekly magazine looking at money trends.
Its contributors include gold bugs, bond fanciers and equity analysers.
The 24th February edition (I’m a slow reader!) contained the following three contributions:
My money goes on Tim Price (the third contributor) especially for his last sentence:
Simon Caulfield wrote:
James Grant, publisher of Grant Interest Rate Observer, likens inflation to tomato ketchup. You can shake the bottle for ages and nothing happens. Then suddenly, your dinner is drowning in the stuff. My advice? Own investments that gain from a weaker pound and rising inflation – and buy Asian currencies and gold.
Matthew Lynn wrote:
Countries with low debts are more stable – just as companies and households with lower debts are. With balance sheets in decent shape, they are better placed to withstand fluctuations in the economic cycle. Nearly all the low debt countries are emerging markets. Slowly investors are realising what is happening. Emerging markets offer greater security and now higher yields. With younger populations, smaller governments, less welfare and lower taxes, they grow faster. Increasingly, the question may well be not how much money you want to have in the emerging markets – but why leave any at all in the developed world?
Tim Price wrote:
Whenever the market anticipates yet more quantitative easing, markets go risk-on. Whenever the market fears the withdrawal of quantitative easing, markets go risk-off. And governments and their central banks are either pumping the accelerator or toying with the brakes. If, like me, you fundamentally fear money-printing, hold gold. If you think the printing will stop, hold quality bonds. Depending on your views of China, it may make sense to hold (or completely avoid) commodities, and in most circumstances it makes sense to own quality blue-chip stocks. But if you can foresee what lies ahead, you’re a better man than I am.
The above commentary is for general information only and is not intended to be relied upon by individual readers in making (or not making) specific investment decisions. Appropriate independent advice should be obtained before making any such decision. Always seek personal advice if you are unsure about the suitability of any investment.

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