{"id":60555,"date":"2021-11-20T17:04:02","date_gmt":"2021-11-20T22:04:02","guid":{"rendered":"https:\/\/olduvai.ca\/?p=60555"},"modified":"2021-11-20T17:04:02","modified_gmt":"2021-11-20T22:04:02","slug":"the-fed-reminds-me-of-a-speculator-who-is-on-the-wrong-side-of-the-market","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=60555","title":{"rendered":"\u00abThe Fed Reminds Me of a Speculator Who Is on the Wrong Side of the Market\u00bb"},"content":{"rendered":"
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\u00abThe Fed Reminds Me of a Speculator Who Is on the Wrong Side of the Market\u00bb<\/a><\/h3>\n<\/div>\n<\/div>\n
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Jim Grant, editor of Grant’s Interest Rate Observer, warns of the rampant speculation in the stock market. He worries that the central banks are underestimating the threat of persistently high inflation and explains why gold has a bright future.<\/strong><\/p>\n

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The financial markets are \u00abhigh\u00bb. In the U.S., the S&P 500 is up for seven straight days, closing on another record at the end of last week. Particularly in demand are red-hot stocks like Tesla and Nvidia with fantastically rich valuations. Together, the two companies have gained around $600 billion in market value in the past three weeks alone.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

For Jim Grant, this is an environment that calls for increased caution. According to the editor of the iconic investment bulletin\u00a0\u00abGrant\u2019s Interest Rate Observer\u00bb<\/a>, investors have to beware of an explosive cocktail combining exceptionally easy monetary policy, a pronounced appetite for speculation, and the high degree of leverage. He also thinks that central banks are underestimating the risk of persistent inflation.<\/p>\n

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\"\u00abWe<\/div>
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\u00abWe have one of the most speculative Zeitgeists on record\u00bb: Jim Grant.<\/h2>\n
(Photo: Bloomberg)<\/span><\/div>\n<\/div>\n<\/figcaption><\/figure>\n

\u00abThe Fed reminds me of a speculator who is on the wrong side of the market\u00bb, says Mr. Grant. The fact that the Federal Reserve is now beginning to taper its bond purchases makes little difference in his view. \u00abIt’s like pouring a little less gasoline on the fire,\u00bb he thinks.<\/p>\n

In this in-depth interview with The Market\/NZZ, which has been edited and condensed for clarity, the outspoken market observer and contrarian investor compares today’s environment with the second half of the 1960s and explains why he expects persistently high inflation rates. He explains what this means for the dollar as well as for gold, and where the best investment opportunities are with respect to the challenge of global warming.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

\u00abThe Fed Reminds Me of a Speculator Who Is on the Wrong Side of the Market\u00bb Jim Grant, editor of Grant’s Interest Rate Observer, warns of the rampant speculation in the stock market. He worries that the central banks are underestimating the threat of persistently high inflation and explains why gold has a bright future. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,32192,303,1849,426,32193,1154,7863,534,4806,8861,3650],"class_list":["post-60555","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-christoph-gisige","tag-fed","tag-financial-markets","tag-inflation","tag-interest-rate-observe","tag-interest-rate-policy","tag-jim-grant","tag-monetary-policy","tag-speculation","tag-the-market","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60555","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=60555"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60555\/revisions"}],"predecessor-version":[{"id":60556,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60555\/revisions\/60556"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}