After-Work Lecture: Using Market Signals from Gold and Spreads to Guide Asset Choices
After-Work Lecture: Using Market Signals from Gold and Spreads to Guide Asset Choices
Dozierende:
Michael Kurt
Frommelt
Prof. em. Dr.
Marco J.
Menichetti
R. David
Ranson
School/Professur:
Markets are a better guide to investment strategy than economic statistics because they look forward and not back. Certain particular markets have substantial predictive power for the economy and investment returns. A consistent rise in the price of gold pushes capital away from financial assets such as stocks and bonds into physical assets such as commodities. When spreads in the corporate bond market widen, capital is driven toward safety (bonds and gold), whereas when they narrow, capital is driven toward risk (equities and commodities).
Mr. David Ranson shows how these movements in these two indicators can help investors earn higher returns.
Mr. David Ranson shows how these movements in these two indicators can help investors earn higher returns.