At last the fed with it’s QE2 scheme are simply repeating the history itself.
We don’t know if the QE2 will bring any good.
Here are some comments that I get:
“Bottom line: The plan provides a boost to the economy’s growth, but it is not going to solve our problems,” said Mark Zandi, chief economist at Moody’s Analytics. “Even with the Fed’s action, we’re going to feel uncomfortable about the economy in the next six to 12 months.”
and this what I get from Reuters
A physical dealer in Hong Kong said: “I think $1,400 is still a major point to break and it seems the stock market is more attractive than gold for the time being. It has to break $1,385 and hold above before reaching $1,400.”
“Then, we’ve got to see if the money will continue to flow into gold.”
The Fed on Wednesday launched a fresh effort to support the U.S. economy, committing to buy $600 billion in government bonds, but critics fear the policy will lead to high inflation and worry that low interest rates risk fueling asset bubbles in other countries and destabilizing currencies.
In my humble opinion. I don’t see gold will decline… even though there will be a short term decline. But if you’re a long term investor than you shouldn’t worry regarding the price.
In the essence it’s back to old school again…. “buy low… sell high…”
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