Bloomberg Opinion/NIall Ferguson/2-20-2022
“For regular investors, these are nail-biting times because wars, unless they are very small and asymmetrical, tend to have big financial consequences. For speculators, by contrast, war scares are golden opportunities. Position yourself correctly, and you can make a killing if the dogs of war are unleashed — though if the hellhounds get sent back to their kennels, it’s you who gets killed and the guy who bet on peace gets the champagne.”
USAGOLD note: It didn’t take long for Ferguson to be vindicated on this observation. The article was posted on Sunday. Yesterday Putin invaded Ukraine and the Dow Jones Industrial Average was down over 2% at one point. European stock bourses were down 5%. All, including gold’s sharp advance and stocks’ sharp decline, quickly reversed, however, as the day wore on and it began to look like the war would not be a long and messy affair.
