I REGULARLY look at capital markets all over the world, and these days, I can say with certainty that a lot of people are afraid.
Generally, investors look for two things when trying to park their money: Safety and Growth.
Safety is the assurance that their investment/capital will not lose value over time. For example, if a person’s savings is in Pesos and suddenly, he hears that the Philippines will soon experience intense inflation, that very same person will try to convert savings into a safe and stable currency. The economy may be headed for a bad place but his capital assets will be relatively safe.
And then we have Growth. When you invest in something, you expect it to grow. This is true for businesses, real estate, savings, bonds, stocks, etc… When a person puts down a million, for example, he may expect it to expand into a million and a half in a few years, or even double itself. Thus, investment is ultimately driven by fear (the desire for safety) and greed (the desire for growth).
But what if there are no more safe places to park you money? And at the same time, what if inflation is reducing all prospects for growth? What then? A person understands this situation will most likely feel he’s in a sinking ship.
Presently, that is the feeling that many traders and investors feel with regards to many markets around the world. Russia-Ukraine, the commodities market, the oil market, the metals market, a rapidly rising inflation rate and many other issues have caused many economies to plummet, and many analysts believe that we are already in a recession or inevitably headed into one.
But more than these problems is the wider problem underneath it all: The Global System is unraveling, and it is unraveling from all directions.
People are now scrambling to put their money in places that offer the best protection. For some, this is gold, for other crypto currency and still for others certain commodities. This fear among investors is a symptom of a world that has become very unstable./PN
