The Unknown Has Become an Opportunity

14.07.2016 • Gold and Natural Resources

From The Fleet Street Letter (Great Britain)-

Britain’s short-lived Brexit crisis has come to an end. Fear and anguish have been stirred up by
the establishment and they bet it would morph into a political and economic crisis. They were
wrong. Just three weeks after the historic vote to leave the European Union (EU) and Britain has
a new prime minister, the FTSE 100 is at a high for the year and the pound has started to recover. It
was a step into the unknown that has become an opportunity.
In 2016, the pound has fallen by approximately 10% against the dollar. Other casualties have
been Europe’s banks. Yet while the world has been drooling over the Brexit drama, the Chinese have
managed to slip in yet another sneaky devaluation. Perhaps we should start to see that as a positive
as it’s necessary for global rebalancing. What can’t be sustained, won’t.
The big winner has been government bonds – not just in the UK, but around the world. In this
issue, I’ll examine why they have been so strong. Some believe it is a sign of recession. Yet instead,
it could be related to China’s currency fall (deflation), excessive risk-aversion or just government
monetary policy that has gone too far. I’ll show you why the outlook for the British economy is rosier
than it has been for some time.

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