Gold and Dollar Rally…..Brexit or Terror?

Normally Gold falls with a rising US$, but in times of global stress US$ and gold rise together and with increased terror activity capital flows have forced 10yr Treas % to record lows.

 

I think this is a fear of foreign governments losing control over terrorist activity vs. US. Capital flees to the US. The US has been the historical peacekeeper and foreign governments often asked for and received US help. The US response to terrorism has generally provided support to foreign currencies, but this is eroding under the current administration. Fear is gaining in strength. Capital flows to areas deemed safe havens. The normal inverse relationship between US$ and gold in times of high stress becomes a correlation.

Charlie Munger: Invert And Use “Disconfirming Evidence”

Charlie MungerCharlie Munger is considered to be one of the best investors and thinkers alive today. His thoughts and statements on investment research, investment psychology, and general rational behavior are often incredibly insightful. Anyone can learn something from this billionaire investor and philosopher. Q2 2020 hedge fund letters, conferences and more If you’re looking for value Read More


 

The past few days reveals a rise in global panic with several hundred people killed in terrorist attacks in multiple locations.

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Todd Sullivan is a Massachusetts-based value investor and a General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer support his thesis. His blog features his various ideas and commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain’s NY, Kiplingers and other publications. He has also appeared on Fox Business News & Fox News and is a RealMoney.com contributor. His commentary on Starbucks during 2008 was recently quoted by its Founder Howard Schultz in his recent book “Onward”. In 2011 he was asked to present an investment idea at Bill Ackman’s “Harbor Investment Conference”.