Yesterday and today the markets are selling everything (including oil and gold) and hoarding cash. It can be interpreted as preparation for the bad times ahead. Where is a safe heaven? I think only Switzerland and Germany.
"We got through the crisis better than almost any other country," says Michael Glos, former German economy minister and a conservative lawmaker in Ms. Merkel's ruling coalition. "It isn't a miracle, it's because we stuck to manufacturing whereas other countries deindustrialized," he says.Buy Siemens and Bunds? Credit Suisse says that America's debt crisis will cause a 30% fall in world stock markets.
4 comments:
Or consider hedging.
If banks collapse, if the American Government goes broke, who will pay the hedge?
Hedging paid off in 2008.
Well, American banks are not going broke so hedging will pay also in 2011.
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