Gold Bugs and Equity Cockroaches

June 20 2014

Investors in gold are commonly called gold bugs. Yet, gold bug is a derogatory term. As Marc Faber has put it nicely, a bug is an insect. The word “bug” or “insect” has a negative connotation to it. Calling gold investors gold bugs makes just as much sense as calling equity investors "equity cockroaches". It’s a way to prematurely end a, for many, much neede... »

Olav Dirkmaat

The Longer It Takes, the More Dramatic the Reversal

June 13 2014

A lot of gold investors are disgruntled. The emotional pain involved in seeing ones gold holdings decline in value while stock and bond markets are reaching a phase of full-fledged exuberance proves to be too much for many. At such extremes, however, a reversal will be hefty. As markets become stretched far beyond their fair limits, a reversal will be deeper and take a greater toll on a majority o... »

Olav Dirkmaat

Negative Deposit Rates in Europe: Unintended Consequences?

June 6 2014

Thursday was the most interesting day of the week as ECB president Draghi announced the central bank’s interest rate decision. Not only was the main refinancing rate cut with ten basis points to 0.15%, but, more interesting, the ECB decided that it will charge banks for depositing funds at the... »

Olav Dirkmaat

Game Time: the European Elections

May 23 2014

Yesterday, both the Netherlands and Great Britain kicked off for the European elections. In the UK the anti-EU United Kingdom Independence Party (UKIP) made huge gains, acquiring between 25 and 30 percent of the votes (about 19 seats). In contrast, the Dutch election results were very fragmented, with the anti-euro PVV obtaining an estimated three seats, while the pro-EU D66 party came out on t... »

Olav Dirkmaat

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