“The world is a very risky place right now for an investor,” is the cautious manner in which Grant Williams (of Things That Make You Go Hhmm infamy) begins this excellent presentation, even though he notes that “the general perception is that there is very little risk,” as all markets from equities to bonds (and even risk itself) are priced as though 2007/8 never happened. It appears, Williams notes, given the market’s perceptions that, “all the problems are behind us.” He chides, “Nothing could be further from the truth.” Williams focuses on the corruption of traditional price signals by Central Banks’ ZIRP (and LSAP) policies, financial repression, and the possibility that the gold leasing market is about to fall apart – because one of these days, someone is going to ask for their gold back and be told they can’t have it.
“By definition, risk-takers often fail. So do morons. In practice it’s difficult to sort them out.”
Scott Adams – The Dilbert Principle