Now that there is a possibility of a double dip recession worldwide many questions start to arise. Unfortunately I wasn't watching the market during 2008/09 and there are certain things that I'm not sure I understand correctly. For example, in 2008 lots of capital flowed out of equities to find safe heaven but not in gold. Was it because treasuries were more attractive at that time? Then when the Fed lowered interest rates to <25% gold started to rise and is still going up. Apparently with current rates near zero and negative real yields gold is more attractive and if the stock market plunges all these funds are going into gold, yen and CHF.
I'm also curious what other measures SNB and BOJ can do to prevent further currency appreciations. Tax foreign bond buyers? If that happens then gold will be the only safe heaven left. Maybe real estate?
I'm also curious what other measures SNB and BOJ can do to prevent further currency appreciations. Tax foreign bond buyers? If that happens then gold will be the only safe heaven left. Maybe real estate?