Daily Briefing – July 29, 2020 – The Fed is the Dominant Agent in this Market: Ash Bennington

Real Vision: Finance & Investing

Real Vision

Investing, Business News, News, Business

4.1 • 1.1K Ratings

🗓️ 29 July 2020

⏱️ 36 minutes

🔗️ Recording | iTunes | RSS

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Summary

Managing editor, Ed Harrison, and senior editor, Ash Bennington, come together to discuss the Fed in light of the FOMC’s announcement today. Ed and Ash drive home how the Fed, at this time, is the dominant agent in these markets and how investor’s feelings regarding Fed action can interfere with one’s ability to make money. Because of the Fed’s mandate, Ed and Ash discuss why they are “the only game in town” and how it’s led them to respond to the crisis with unprecedented force. They then consider the weight of the arguments concerning the dollar losing reserve currency status and examine the implications of the Fed’s latest announcement. In the intro, Nick Correa covers what’s happening in gold markets and whether the rally is “overhyped” as well as Santander’s and Barclays’ earnings announcements. Sponsor Link - Keep Coming Back : http://keepcomingbackpodcast.com/ Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Do you hear that? It might sound like nothing to you, but it's actually the sound of nuclear, wind and solar energy.
0:11.0	At EDF, we're busy generating more British
0:14.2	zero carbon electricity than anyone to help keep future energy
0:17.7	cost down for everyone and help cut UK carbon emissions to nothing.
0:21.8	Sound good to you? Find out more about our
0:24.9	zero carbon generation at EDF Energy.com slash Help in Britain. It's Wednesday, July 29, 2020, just after market close in New York.
0:37.0	This is the Real Vision Daily Briefing.
0:45.0	I'm Ash Bennington in New York joined shortly by our managing editor Ed Harrison.
0:50.0	But first with the day's stories, Nick Correa.
0:53.2	Thanks, Ash.
0:54.1	Gold price today is recovering from a minor pullback yesterday.
0:57.3	It remains comfortably perched about the 1950 level.
1:00.4	Yesterday, Goldman issued a new report that's on everyone's mind.
1:03.2	It raised its 12 month forecast from $2,000 to $2,300.
1:07.4	And they explained their reasoning by citing negative real yields and concerns about the
1:11.6	dollar's future status as the world's reserve currency.
1:14.5	But not everyone is so bullish.
1:16.1	There are some naysayers such as Morningstar who cautioned that the yellow metal may not live
1:20.6	up to its reputation as an effective inflation hedge.
1:23.6	They found the correlation between gold and inflation was very weak at only 0.07.
1:29.0	They didn't include a chart, but they said it was over the past 15 years. But looking back to 1965 shows the correlation is much stronger.
1:36.0	It's curious that they chose to start their analysis at a point where the average correlation balanced so close to zero.
	...

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