The United States and China are engaged in a trade conflict, which is starting to increasingly resemble a real trade war. Now, I am fully aware that I am not saying something new here. However, I do want to address this topic once more, because it is about more than just trade.
... »It’s Not the Trade Deficit, Stupid!
September 6 2018
Edin Mujagić
On Gold as Inflation Hedge
June 20 2018
Is gold truly a solid hedge against inflation? Not quite, at least according to a study by Credit Suisse and the London School of Economics (LSE). They looked at the performance of gold and stocks from 1900 to 2012 and concluded that gold prices are too volatile and that stocks enjoy better returns. Whereas an investor exclusively invested in gold earned an annual return of 1.1 percent over the same period and suffered several heart attacks in the meantime because of the high volatility, a
... »Edin Mujagić
Attention: Central Bank Week Is Coming
June 6 2018
If there is any truth to the statement that central banks can move financial markets, then we can expect a lot from the second half of June. In a matter of merely three days, between June 13 and June 15, our monetary knights in the US, the Eurozone and Japan will meet and discuss monetary policy. A
... »Edin Mujagić
China Could Push Up Interest Rates in the US, But Will It?
May 24 2018
How big is the chance that China will use its own currency – the yuan – as a countermeasure in the trade war with the US? In my view, the chance that China will do so is negligible. Another possibility to hit back and harm the US is by stopping to buy and/or selling US Treasuries. This could potentially wreak havoc on US interest rates, driving them much higher. What are the odds that Beijing will use this weapon of financial destruction?
... »Edin Mujagić
