According to him, the Chinese authorities reacted too late to the spread of the virus in the country, which ultimately led to a violation of the global supply chain of goods that are produced in China. In the future, stock markets will suffer. The Chinese economy is now under pressure due to the fact that not all enterprises have begun work after the February holidays. For example, Amazon's largest online retailer still cannot get all the products from China that it sells, which negatively affects the stock market.
According to the analyst, the current situation should not be compared with 2008, because now the situation in the global economy does not look as catastrophic as it was 12 years ago. Then the entire financial system of the world was on the verge of collapse, which could affect almost the entire population of the earth. Now the situation will affect only a limited percentage of people.
The main question is how the United States will respond to the spread of the virus in the country. According to Kaiser, the Federal Reserve is not currently operating in an entirely effective way. It is impossible to endlessly lower interest rates. Soon they will drop to 0%, which ultimately will hurt investors and retirees. Zero interest rates will not solve current problems.
As for the world price of gold, the yellow precious metal will become an increasingly popular asset for investing amid a decrease in government bond yields. He predicts a rise in the value of gold to a range between $ 2000 and $ 3000 per ounce.