I see all the big institutions are pouring money into T-Bonds, Gold, and other
perceived safe havens. As they make a mass exodus from the stock market.
None of this can be good. But I am wondering how this bubble in safe assets
will get resolved. Any thoughts?
Flight to Safe Harbors
Started by
eafetrader
, Sep 03 2011 05:13 AM
1 reply to this topic
#2
James Quillian
-
- Traders-Talk User
- 1,364 posts
Member
Posted 03 September 2011 - 08:02 AM
IMO there is no safe place to put money in the world today. The world is over financed. There are not enough vehicles to accommodate all of the money that is looking for ride. At first glance that situation looks bullish for stocks but it isn't. What makes a bubble is when an assets value starts to rise independently of its productivity. There is an economic reality here that imposes itself on all of us regardless of our opinions on the matter. When assets are not worth the amount of money invested in them there are countless possible outcomes but none of them are good. So, I am short a whole gob of stocks.
I see all the big institutions are pouring money into T-Bonds, Gold, and other
perceived safe havens. As they make a mass exodus from the stock market.
None of this can be good. But I am wondering how this bubble in safe assets
will get resolved. Any thoughts?
