Market Insight 2009

Dollar Bears have the upper hand! Is it a coincidence that, as Gold breaks through the $1,000 an ounce level, the US Dollar has fallen to its lowest level against many of its major trading partners in over a year? A report this week has suggested that some countries (particularly China) are, once again, diversifying reserves away from the US Dollar into Gold (and the Euro), thus helping to push the precious metal up to current levels. Statements from the United Nations suggest a multi-national reserve currency.

Will there be a Sting in the Tail? Equity markets have railled strongly since their mid-March lows on optimism that a global economic recovery is under way; however, in their fervour, are investors actually ignoring the underlying economic fundamentals? In this note we ask,"Will there be a sting in the tail for equity investors?"