THE NEXT WAVE OF INSTABILITY — SOVEREIGN DEBT
The reason why gold is back to a four-week low is because the bull trade became very overcrowded and the yellow metal was ripe for correction after a parabolic move, but what a buying opportunity this is going to prove to be. Of course, the U.S. dollar has recovered from the abyss, but only for now. While the greenback has re-emerged as a safety-valve, what makes gold special is that it is not responsive to global economic shifts or is it any government’s liability. The situation in Europe is troubling — fiscal concerns are mounting, not just in Greece and Ireland (where deficit ratios are north of 9%) but also the U.K., Spain and Portugal (though Ireland did come out with a very austere budget last week).
….read David’s Breakfast Lite summary HERE
….read David’s full Breakfast with Dave commentary HERE.