Ananthan Thangavel was invited back to discuss his forecast for the top of the gold market during his interview with Fox Business 9/12, and also to discuss other assets he is currently shorting.
10/11/2011 Lakshmi Capital Fox Business News Video
From the video:
“To be honest, we are short pretty much all risk assets. But probably the best one is the Australian Dollar. The Australian Dollar is heavily economically linked, due to the fact that almost all of Australia’s exports are going to China. Anytime China slows down, Australia is going to feel that twice as badly. If you look at what’s going on in Europe right now, Europe is going into a recession which, in my opinion, is a foregone conclusion. Once Europe goes into a recession, China will slow down. If that starts to pierce the Chinese real estate bubble, you could have a major problem. China buys a ton of copper and other commodities from Australia, with China representing 50% of worldwide copper demand, 50% of worldwide cement demand. The Australian Dollar could take a real beating.”
“The story here is long US Dollar. The US Dollar back in August lost its safe haven bid a little bit due to the debt debacle and dysfunctionality of the Government. But, we expect now that the Fed has essentially stopped printing money it’s going to come with Operation Twist until June 2012. Every other central bank out there, especially in the developed world, is just flooding the world with liquidity. As the US Dollar regains it’s safe haven status, we really think that asset is going to outperform all others.”
