Switzerland is doing fine outside the Euro. Norway is doing fine outside the Euro. The UK is doing poorly outside the Euro. Would they do better inside the Euro? Very much doubt it. But I guess now both sides are happy. The British politicians can play the public how they will not bow down to Brussels, making the people forget about the terrible numbers of their own. The Europeaners can go to the public and say if you don't want to save the Euro like the Brits get out of the way, making the public forget about the ongoing mess.
I am not sure its so simple. There are many bots that trade on correlation also -> +ve correlation with dollar and risk. So, dollar going up, equity going down -> gold going up. The only logical way i can explain gold's fall in price is either (i) some 'big' liquidation going on in the market OR, (ii) gold traders are being pre-emptive in their response - if this is the case, then it means that we 'might' see a very sharp fall in equity indices and other risk assets sometime this week, and correspondingly forced liquidation. This explanation assumes that gold traders are smarter and are a great signal to track broader market. OR (iii) Paulson is liquidation - his fund is going under ....
Yes, I am a gold bull, every decline is a gift! Till the time money printing, debasing of ccy is going on, gold will remain in a bull market. These are multi-decade phenomena, gold might surely suffer a couple of down years, but over the next 10 years gold should be a good asset to hold, especially as a protection of your wealth against the emerging markets (india, china) demand for raw/industrial material. Its a no-brainer trade.
Hendry's China short fund +52% YTD. Eclectica +12.2% YTD. http://www.ft.com/intl/cms/s/0/dc342280-24cc-11e1-ac4b-00144feabdc0.html#axzz1gEUSlXmd
Bought E.ON and RWE this morning. Time to go to sleep for the next 15 years. These companies will compound their owners' investments by 12-15% annually during that time.
Last week's EU summit = complete 0. Eurocrats setting up Cameron to take the fall. Can't make this stuff up. http://online.wsj.com/article/SB100...4434538.html?mod=WSJEurope_hpp_LEFTTopStories
What terrible numbers are you talking about? GDP is positive and the government funds itself at 2% over 10yr. It's not so bad compared to the EZ. Viable businesses can survive.