Coronavirus and investments

JimB said:
PM’s love inflation, central banks say that they can control inflation while directing any need for a recovery. Not sure that I understand how, but PM investors believed them.
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I don't think that's the explanation. The developed world central banks have been desperately trying to INCREASE inflation for years. And they have failed. I think gold and Treasuries are signaling that prospective central bank measures (that everyone thinks are coming) will also fail to stoke inflation and even worse, will fail to maintain current low inflation rate and that we will have deflation. And people don't want to own PMs in a deflationary environment. They want developed world sovereign and investment grade bonds.
 
drypowder said:
I don't think that's the explanation. The developed world central banks have been desperately trying to INCREASE inflation for years. And they have failed. I think gold and Treasuries are signaling that prospective central bank measures (that everyone thinks are coming) will also fail to stoke inflation and even worse, will fail to maintain current low inflation rate and that we will have deflation. And people don't want to own PMs in a deflationary environment. They want developed world sovereign and investment grade bonds.
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Isn’t this what they’ve been calling Japanification, where they create an environment conducive to inflation but it just never seems to catch, and then they fall into deflation which is both a bigger problem and harder to manage.
 
JimB said:
Isn’t this what they’ve been calling Japanification, where they create an environment conducive to inflation but it just never seems to catch, and then they fall into deflation which is both a bigger problem and harder to manage.
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Exactly. The Fed has seen Japan fall into that for decades, and more recently they've seen Europe slip into that trap, and they are desperate to avoid the US following the same path. And gold selling off when many would have expected it to rally (with the prospect of monetary easing), seems to be signalling that the Fed, and central banks in general, will fail.
 
wvsig said:
I am considering pushing my entire IRA contribution for the year into the market today. LOL
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So just wondering Einstein, did you actually do it? Because you're down a lot if you did.

And of course you'll say, "I pushed it into all of the things that have went up!". LOL
 
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Railsplitter said:
So just wondering Einstein, did you actually do it? Because you're down a lot if you did.

And of course you'll say, "I pushed it into all of the things that have went up!". LOL
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No I didn't I was joking. I am a firm believer in dollar cost averaging not timing the market. If you have read my thoughts on investing for retirement you would already understand that. In the end I am not worried about the temp downturn because I don't need the money today. Just like in 2008.
 
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I read the metals market will be somewhat more sensitive, especially silver, because it is responsive to both investors and industrial demand both which should track lower for the Coronavirus cycle. Also the China and India markets which are big consumers do a fair amount of face to face trading and the scare likely will cut into that also. The article did not say to what extent or how long they believe the trend will last.
 
Huge day today, but I don’t think it’s over. I’m a pessimist.
 
JimB said:
Huge day today, but I don’t think it’s over. I’m a pessimist.
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I am a pessimist too - supply chain problems will rear their heads tomorrow.
 
Hey look at that!

I wonder if the market read the emergency rate cut as evidence that the problems are real and significant where before it was maybe just the media blowing stuff out of proportion.
 
Yes, the fed spooked the market with the way he announced the rate cut ahead of a fed meeting.
 
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