FINSUM + Magnifi: Gold Could Surge on Chinese Import Changes
April 20, 2021
China is one of the largest gold consumers in the world, but the pandemic has put the market in turmoil as supply couldn’t match. This has elevated domestic prices high above the international rates. However, China has permitted banks to import Gold into the country. This could be a boom to world gold prices as the country plans to invest $8.5 billion into imported gold in April for April and May supply. Vaccines and stimulus have halted Gold's growth as of late but a fundamental shift from a major bullion consumer might turn the market bullish.
FINSUM + Magnifi: Why Gold is Positioned for a Bull Run
(March 2021)
The price of gold has been in a slump after it reached all-time highs mid pandemic. A variety of micro and macro factors are melding to put this commodity in a major second rally. The macro factors are as present as ever. The Fed is still expanding its balance sheet to pump up inflation. On the Fiscal side, the Biden admin is pushing its $1.9 trillion stimulus package. Inflation is on every investor's mind as treasury yields rise and TIPS spreads see it right around the corner. This precious metal is the classic asset to hold as cash loses its value, but for those who don’t want to own the commodity directly a Canadian mining company Starr Peak Exploration (STRPF) is poised to rally. It has expanded nearby mining territory and investors see it as a value play in the next bull run. Berkshire Hathaway has positioned itself behind Barrick Gold this last summer.
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FINSUM + Magnifi: Wall Street Warns of Big S&P 500 Drop if Biden Wins
(October 2020)
Wall Street has been all over the place in its prognostications for this election. The clear market trend over the last few weeks has been higher alongside gains in the polls by Biden. Some think a Biden win would be good for markets, but today a Wall Street strategist, David Kalayjian, is warning of a 5% drop in the S&P 500 if Biden emerges victorious. “A lot of people are worried because they don't have the details of the Democrats policies. So, the potential blue wave causes uncertainty and will be negative for the markets for a long time”, says Kalayjian.
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FINSUM + Magnifi: Morgan Stanley Says Now is the Time to Go All-in on Stocks
(October 2020)
In an unusually bullish opinion, one of Morgan Stanley’s best-known and most bearish strategists—Andrew Sheets—has just released a very bullish outlook. The bank’s chief cross-asset strategist is telling investors to dump their defensive positioning in large tech and long-dated Treasuries and switch to risk-on asset like small caps. Sheets contends—in contrast to many other analysts—that growth will continue unabated, saying “The glass half-full view of stimulus talks is if you don’t get it today you’ll get it tomorrow from whomever wins the election”. He points to the recent outperformance of cyclical and value stocks as evidence that investors are getting more bullish.