‘The risk of investing is the highest when the perception of risk is lowest, and vice versa.’
What this essentially implies is that when the situation is benign, most people are confident about investing in a particular asset class — the risk, in all probability, in that asset class, is the highest. I have been negative on gold for a very long time, in typical contrarian play.
Gold prices topped out in the third quarter of 2011 at $1,900 per ounce, and has since fallen 40% in USD terms. This was incidentally the time when most central banks were …read more
Source: Daily News & Analysis
