by Chris Waltzek
Bob Hoye, senior investment strategist at Institutional Advisors returns with comments on global equities indexes – policymakers are purportedly moving heaven and earth to prop up shares. Case in point, economic Emperor, Shinzo Abe’s regime is holding rates in negative territory, adding to the $13 trillions in total negative debt, worldwide, to the benefit of Nikkei shareholders. While most investors are familiar with the phrase, errare humanum est, to err / make mistakes is only human, the full phrase, errare humanum est, preserverare diabolicum, applies to CB policymakers, to err is human, but to persist in error, is diabolical. Consequently, negative rates is financial plutonium to the precious metals sector, as supported by Barsky and Summers (1988), via Gibson’s Paradox.