I was talking with a guy today about how George Soros sold out of all his US stocks and bought a bunch of gold about a month ago—right before the latest big lift in gold prices. We both agreed that it was a heck of a good move with the exception of his liquidation of US stocks which have done well with Fed easing.
The general consensus has been that QE3 will bounce stocks and commodities, but the general consensus is usually not the place where significant money is made.
Interestingly Warren Buffett and John Paulson got out of some consumer oriented stocks in a fairly big way over the last month. 3 big NO votes on the American economy—at least at this moment.
Anyway, as I was checking the financial news tonight I saw that according to Bloomberg Asia is afraid there isn’t enough easing coming online to spike the world economy. Have we jabbed the cadaver with adrenaline too many times? Have we blown a gasket? If open ended QE junk isn’t rallying the markets, then things may just have changed. It is far too early to tell of course.
Investors are “finally realizing that recently announced liquidity injections from central banks will do nothing to address the structural issues,” said Matthew Sherwood, Sydney-based head of markets research at Perpetual Investments, which manages about $25 billion.