The surges in gold and Bitcoin over recent days have excited investors. We retain our long-term bullishness towards these assets as long-term monetary inflation hedges. Nonetheless, the cycle is also important, and although we take encouragement from latest evidence that policy makers are prepared to ‘print money’, the fact is that rising bond yields may temporarily spoil the party.
Latest Global Liquidity data is reported in the chart below. It continues to slow in growth terms (5.4% up YoY, and 2.4% annualized in past 3-months), while the absolute level inches higher, testing US$195 trillion.
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