Analyst: We are heading to something similar to Lehman event, stay bullish on gold - Video
The majority of panelists at the gold conference in Vienna were bearish towards gold, saying it will dip below $1,000 an ounce, besides one lonely ranger, analyst Diego Parilla, the author of "The Energy World is Flat".
The general consensus is more of the same, people are looking at the U.S. as an area of bright economic outlook. The factors of a stronger dollar and timing of a rates increase prevail, and the general sentiment is bearish.
However, Parilla explains that he is bullish for possibly wrong reasons. He finds a clear parallel between the Lehman Brothers thing and what we might be heading to. He sees a huge bubble in fixed income. What is really worrying him now is negative interest rates, as it is an idea of perpetuating the bubble further.
Is there a real possibility of a QE 4? The monetary policy is contagious, Parilla says. The U.S. should be hiking, but these expectations are putting emerging markets under heavy pressure, and the advanced economies think their crisis will touch them indirectly, so they had better hold off. But the next QE would be an absolute disaster...
