Posted by on July 22, 2017 12:35 am
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Categories: Bullion Business Central Banks Debt Ceiling donald trump Economy Exchange-traded funds Finance Gold as an investment Gold investments Investment money None Precious Metals Reality SPDR SPDR Gold Shares

Since the election of Donald Trump as President, ‘hope’ has triumphed over reality…

As this Trumptopia has evolved (and as yet achieved very little in reality), hard data – real actual economic output – has collapsed to two year lows, as surveys of economic activity reached record levels of delusion… and over the last couple of months fell back somewhat to reality.

Despite that realization that all is not as utopian as surveys once suggested, US equities have soared to record highs as holdings in SPDR Gold Shares, the world’s biggest exchange-traded fund backed by bullion, plunged this week to the lowest since February.  After reaching a 2017 high last month, Bloomberg reports that assets in the ETF have dropped as signs of stronger economic growth boost equities and spur more central banks to consider raising interest rates.

So, investors are giving up on gold and going all-in on US equities on the basis that ‘optimistic’ surveys of self-referential management in America will come true?

There’s just two things…

First: this exuberant surge in ‘stretched’ asset values across the globe is driven by one simple factor and it’s not Trump

And Second: ‘Murica faces a debacle as the debt ceiling looms (and is starting to make investors anxious in more professional markets)

So, the question is – will ‘hope’ continue to triumph over ‘history’ as record levels of money-printing worldwide is seen only as a good thing with no downside… none at all?

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