Posted on January 31st, 2010
- Loss of confidence in the Euro
- Loss of confidence in the $US
- Loss of confidence in the Yuan
- Loss of confidence in the Yen
- Loss of confidence in all paper money
- A decline in the value of fixed income assets
- A rise in the price of assets that can be expected to keep at least part of their value (gold, real estate) or produce rising income to compensate for at least part of loss of value of the currency (tips and eventually even stocks) .
While any part of this scenario does not have a very high probability, it is certainly too likely at this time for investors to ignore its indicators or to not prepare for it. And some of the markets (e.g. Gold, Oil, and bonds) seem to indicate that not all investors are oblivious to it.