Gold
Sources close to ‘Sun Worldwide’ suggest that the private fund is convinced that the recent return of investors’ risk appetite is premature as there are further downside risks to the global economy that have yet to manifest themselves.
Individuals familiar with analysts at ‘Sun Worldwide’ say that the firm is advising clients to continue to avoid financial stocks despite their recent apparent resurgence in recent days thanks to better than expected quarterly figures from Goldman Sachs, JP Morgan Chase, Wells Fargo and Citigroup.
‘Sun Worldwide’ are thought to believe that the muted response to the US Government’s TALF program will see the housing market continue to drift downwards as the limited availability of mortgage finance hampers efforts to stem the slide in values thereby raising the prospect of further write-downs on bank balance sheets that the recent changes to mark-to-market accounting rules are meant to reduce.
‘Sun Worldwide’ says that the softening in gold prices provides a good opportunity for investors to acquire the precious metal in anticipation of a global currency crisis as governments print money to inflate away their massive debt mountain.
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