Loading ...[And, no, this is not some fringe blog predicting the apocalypse, this is the prediction of one the 4 largest US banks]
But. it’s way too early-IMO–to slap a contrary label on their gold bullishness–I prefer to think. of these capitulations as “recognition time”….also there can be a preponderance of bulls in a bull market for a lonnnnng time before one needs to become a contrarian…
Which brings us to BofA’s conclusion: “We fear that this dynamic could ultimately lead to “quantitative failure”, under which markets refocus on those elevated liabilities and the lack of global growth, which would in all likelihood lead to a material increase in volatility.”
How does gold fall into this: “At the same time, and perhaps perversely, such a sell-off may prompt central banks to ease more aggressively, making gold an even more attractive asset to hold.”
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In other words, as the world approaches the financial endgame and central banks are out of ammo beside just doing more of the same – that led the world to the current catastrophic state – gold will be the biggest beneficiary of the upcoming financial cataclysm. And, no, this is not some fringe blog predicting the apocalypse, this is the prediction of one the 4 largest US banks.