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Geopolitics

Long Gold Short OilGold has a historic relevance as being a price appreciator in times of volatility, geopolitical risk and economic uncertainty. Current day presents a plethora of risks both economic and political; from emerging market credit risk through to south china sea politics. Oil, like Gold has benefitted from a fall in the USD which has lead to some price recovery, however this does not change the fundamental facts that there is still chronic oversupply. Long Gold for economic risk hedge, Short Oil for for USD revaluation protection and further oversupply issues.
AMEX:GLD
by MarcusWilliamson
1
Ah... China, and we've just begun - yellow line of despairWe won't be getting higher than the yellow line any time soon. With recent events around China's "real" numbers coming in (who knows what's real anymore?) and the issues around oil production (which are NEVER going away b/c in 15 years we won't even need oil anymore), the market is in a major, structure re-evaluation phase. Why? 1. Global unease in the old model of forever growth, which is unsustainable 2. QE x 17 or whatever and people realizing that money isn't actually worth anything (currency) 3. All the old people (baby boomers) cashing in their retirement accounts so they can buy that giant bus conversion and finally go visit their grand kids. 4. Marijuana. If you want to decrease employee productivity... give it to them.
AMEX:SPYShort
by trader_boulder