Tim Price And Don Coxe: “We Have Entered The Most Favourable Era For Gold Prices In Our Lifetime”
by Tim Price
Acclaimed screenwriter William Goldman (The Princess Bride, among many others) famously began his autobiography with three telling words: “Nobody Knows Anything.”
The same logic would seem to apply to much conventional reporting of the financial markets. Any investor looking for informed analysis of market developments can therefore save themselves a few minutes every day by choosing not to read any of the ‘Companies and Markets’ section of the FT, which typically constitutes a fantastic piece of fiction.
(If there is a more thankless task in finance than trying to explain why certain markets did what they did yesterday, we don’t know what it is… unless it’s working in the PR department at Goldman Sachs.)
But as Soc Gen’s Dylan Grice has frequently pointed out, human beings are suckers for stories. We seek meaning from just about everything, and financial markets are no exception. Why else would otherwise rational people shell out ~£2.50 every weekday just to read a selection of vapid and contradictory speculations about recent market price action?
At the risk of going out on a limb, here is our own inherently subjective “take” on the current market environment: Investors seem to believe that the euro zone debt metastasis has gone into remission. There is an uneasy calm to both equity and bond markets — it feels like the calm before the storm.