All events are now unfolding around the massive political response to the coronavirus crisis. “We are now in uncharted waters. A scenario that has never happened before is unfolding before us, ”the expert expressed this opinion.
“In addition to the near-zero interest rate, there is excessive debt all over the world,” he explains. “This debt is present at both the corporate and individual levels. It's a real problem when inflation gets out of hand. "
The main question, according to the financial expert, is how to contain inflation: “If the Fed raises interest rates in the current environment, the impact on the economy will be very significant. The Federal Reserve is forced to move along the edge of the chasm lest the rate hike lead to the sharp reversal of the economic stability it has been able to create to date. ”
According to John Dean, real assets such as gold, commodities and real estate will be the main winners in the current situation: “This is practically uncharted territory and the result is unknown,” he explains.
“It's always important for me to look at the risk / reward ratio. And for me the benefit is that I invest in real or "hard" assets, and gold naturally plays a central role in this. It is physical assets that are the biggest winners in a crisis, whether they are real estate, gold, bitcoin, other precious metals, or solid commodities. Whatever the outcome, they become winners both during the crisis and after it. "