Newton IM’s Flood Is Adding to Positions in Gold

The video discusses the role of gold as a safe haven asset, especially during times of economic uncertainty and low interest rates. It explores investment strategies in gold, considering its lack of yield but stability in uncertain times. The impact of the coronavirus on global markets is analyzed, highlighting the potential for it to become a seasonal virus. The discussion also covers expected monetary policy responses, including rate cuts and quantitative easing, to support the economy and businesses during the pandemic.

Why is gold considered a safe haven asset?

• It stabilizes portfolios during economic uncertainty.

• It is immune to market fluctuations.

• It provides high yields.

• It is backed by central banks.

What is a potential future scenario for the coronavirus according to the discussion?

• It will only affect certain regions.

• It will not impact healthcare systems.

• It will become a normal, seasonal flu-like virus.

• It will be eradicated completely.

How does the coronavirus impact the global economy according to the discussion?

• It leads to increased global trade.

• It has no significant impact.

• It only affects the healthcare sector.

• It creates uncertainties and potential for a seasonal virus.

What economic measures are expected from central banks in response to the coronavirus?

• Implementing quantitative easing.

• Increasing interest rates.

• Halting fiscal policies.

• Reducing asset purchases.

What is the role of fiscal measures during the coronavirus pandemic?

• To increase corporate taxes.

• To reduce government spending.

• To support businesses with cash flow issues.

• To eliminate central bank interventions.