Jim Paulsen: “gold is the answer to any problem which keeps you up a night; inflation? Buy gold! Deflation? Buy gold!”
Not everyone is bullish. Jim Paulsen, Chief Investment Strategist for Wells Capital Management has sat out the rally and says, gold is overdone.
“One of the problems I have with it is ‘gold is the answer to any problem which keeps you up a night’. That is, worried about inflation? Buy gold! Deflation? Buy gold! Deficits, Euro crisis, flash crashes, run on the U.S. dollar? Buy gold!” But, no near term catalyst for a big sell-off, more of a slow grind reaction to improving economic fundamentals may eventually shift the bias away from the “fear trade”.
Orderly commodity markets are an oxymoron – watch for a catalyst to move this market much higher or, much lower.
Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.