The Fed's big announcementSo why is gold, a classic anti-inflation hedge, still doing so well? The answer to this enduring puzzle may lie in the level of real interest rates. As Chris Watling of Longview Economics points out, gold’s last great bull run was in the 1970s, when real yields were negative. Positive real rates in the 1980s and 1990s had bullion trading sideways for 20 years. In a world of negative yields, owning gold has no opportunity cost.
Down the slipway
“Quantitative easing” is unloved and unappreciated—but it is working
Accentuate the negative
A very unusual sign of confidence in economic policy