All of these factors are out of our control, so how are we reacting?
There is a lot of uncertainty in our market. How do we know this? The gold market thrives on uncertainty. Precious metal has soared to a seven year high and long positions in gold futures and options has jumped.
Interest rates were expected to drop by a full 25 basis points this year, and given the recent drops and the trifecta of uncontrollable conditions, economists are suggesting that consumers and businesses now believe the economy and its prospects are worse than they actually are.
The Reserve Bank Governor Philip Lowe said that despite the disasters, the economy was going through “a gentle turning point for the better”, predicting modest increases in growth and consumer spending over the coming two years.
Let’s cross our fingers and hope 2020 starts to see a smoother ride.