2012 forecast: Equities weak, look at US dollar and gold
The charts are telling us that equities are still bearish. Which means the US dollar and gold still have some traction.
Agreed… too many U.S. equities are invested in the European market. When the Euro collapses, U.S. equities will suffer some. And for the time being, the dollar is still a perceived safe haven… but in the final analysis, Gold will be the only place to hide. We believe this will all take place during 2012.
When the euro collapses… equities weak… it is the same story for the past 3 years! Gold and greenback can be fairly safe but dont tend to generate systematic and coherent returns apart from points of extreme uncertainty (which no doubt occured in the past 3 years and is still occuring). In terms of investing I would be keen towards commodities (both producers and traders) and in terms of trading, I think it is quite a good time to take advantage of the equities volatility
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