Equity in a sweet spot - Gold against inflation
Equity are still in a sweet spot of low rates and government : +3,46% for SP500 and 6,29% for Pacific Ex-Japan (ETF EPP) since last Friday. Gold (+5,87% for GLD since last Friday) is picking up as it is seen as a hedge against a potential new inflation trend fueled by reflation [1]. [1] Reflation is the act of stimulating the economy by increasing the money supply or by reducing taxes . It is the opposite of disinflation . It can refer to an economic policy whereby a government uses fiscal or monetary stimulus in order to expand a country's output. This can possibly be achieved by methods that include reducing tax, changing the money supply, or even adjusting interest rates .