things continue to erode, which is obviously going to happen. The Chinese Vice-Premier warned that he expects a deep global recession.
What do these headlines have in common? Well, in addition to being horrible, every one of the items was stunningly predictable.
“What’s the surprise?” asks my partner Matt Nesto in the attached video. “The Super Committee that was set-up to fail, designed to fail, did what they were supposed to in that regard.”
Any person with even a rudimentary understanding of European history knew the eurozone was doomed, Moody’s repeated well-known concerns and the Chinese seem to be the last government on Earth to acknowledge the risk of global recession.
It’s often said that “markets hate uncertainty.” Days such as this prove the market isn’t crazy about certitude either. “Good news doesn’t have a leg to stand on,” is how Nesto puts it and who would I be to argue? The Big Man’s negativity at higher prices was obviously warranted
See the full “Breakout” segment below:
Related ETFs: SPDR Gold Trust (NYSEArca:GLD), CurrencyShares Euro Trust (NYSEArca:FXE)