What I find difficult to reconcile in all the data is how sentiment can suck this badly, oil prices can implode, Europe can struggle with its PIIGS, China can screw the GDP pooch and technological innovation can stymie jobs growth by moving too quickly, and yet we’re still here…slowly recovering.
In 1981, Gold was going up fast and hitting $850 an ounce, much like it did in the run up to 2011 when it topped out at $1800 an ounce. On both occasions, investors then piled in on an assumption widely supported by the media (read: bad idea) that Gold was heading to $3000 an ounce…or higher. So what happened? It went the other way, and continues to do so.
In a report dated July 2012, the Tax Justice Network revealed how between $21 trillion and $32 trillion of global private financial wealth had been invested virtually tax free in more than 80 offshore “secrecy” jurisdictions as far back as 2010.
Buybacks are not the enemy here, and nor are they the last remaining pillar of a seven year bull market, but they’re being badged as such to investors.