Emerging Markets vs. domestic markets could be game on if the chart can recover in a big way if we respond to the Federal Reserve and European Central Bank meetings this week the way emerging markets did in the epic first week of Sept 2012.
Recent developments in the United States, Europe and Japan point to monetary easing on a global basis being around for quite some time. Gold Fields (GFI, quote) offers shareholders protection against the adverse effects of central bankers debasing fiat currencies along with a strong dividend yield.
In his Jackson Hole speech last week, Federal Reserve Chairman Ben Bernanke did not give financial markets the boost many Fed watchers were hoping for, but he did highlight the appeal of dividend-paying emerging market ETFs.
The gold market got a jolt last week, like most markets, from a surge of investor hope for the eurozone climaxing in European Central Bank chairman Mario Draghi’s July 26 pronouncement the ECB will “do whatever it takes” to keep the common currency intact.
Any hint of animal spirits returning to the gold market was subdued over the past week as the euro crisis entered a new phase with scary Spanish bond yields, and Federal Reserve chairman Ben Bernanke stolidly resisted any fresh hints on when he might roll out QE3.