Is deflation around the corner for investors? Geopolitics is becoming more and more decisive for daily events. Sweden fears an attack by Russia and it is indeed becoming more and more likely that at least Ukraine and Taiwan will be attacked. We are in a war cycle that will continue for years. Under these circumstances, stocks are holding up well so far, but confidence is fading and cracks in the bull market are beginning to appear. Investors are getting scared. Interest rate hikes are on the horizon in the U.S., but how likely is it that a textbook approach will be taken? The market and investors are addicted to cheap credit and its absence will lead to collapse. That said, long-term interest rates have probably seen their low, bond price declines and much more money creation are the likely result. The broad stock market, with exceptions, will not be a good investment either. Are we on course for a full deflationary panic, or is there more to the story? Egon von Greyerz sits down with Investor Talk to answer these questions and more.
Egon von Greyerz (EvG) - Founder and Managing Partner of Matterhorn Asset Management AG (MAM) and GoldSwitzerland based in Zurich, Switzerland.
EvG predicted the present and unprecedented problems in the world economy well over 15 years ago. Following the big unwind of precious metals by western central in 2002 when gold had dropped to around $300 per ounce, MAM recommended its investors to put 50% of their investment assets into physical gold stored outside the banking system.
Egon von Greyerz started his working life in Geneva as a banker and thereafter spent 17 years as Finance Director and Executive Vice-Chairman of a FTSE 100 company in the UK, Dixons Group Plc.
Since the 1990s EvG has been actively involved with financial investment activities including Mergers and Acquisitions and Asset allocation consultancy for private family funds. This led to the creation of Matterhorn Asset Management in 1998, an asset management company based on wealth preservation principles. The GoldSwitzerland Division was created to facilitate the buying and storage of physical gold and silver for private investors, companies, trusts and pension funds.
EvG makes regular media appearances and speaks at investment conferences around the world. He also publishes articles on precious metals, the world economy and wealth preservation.