Outlook for 2020 and 2021.

Gold and copper.

Equities and bonds.

If we look at the recovery so far in the majority of economies it is quite less exciting than what many expected, so what we can certainly rule out is the concept of a V-shaped recovery. I think it’s also very uneven. We see that the recovery is quite rapid in those areas that have to do with government spending and weaker in those areas that have to do with travel and leisure. Considering the outlook for 2021, what we believe is that there will be more of an L-shaped type of recovery.

My chat about my book “Freedom or Equality”

It is very important tounderstand the lessons learned from this crisis.

The first one is that we should not give more power to governments that have been completely unable to prevent and manage the pandemic. We need to understand that if we implemented the measures and the policies that the left-wing parties propose, massive government intervention, what we would have in this crisis would not be just a healthcare problen. We would have shortages of supplies, we would have rationing.

This crisis shows that more government is not the solution, but this crisis also shows that the way in which governments have addressed the pandemic proves why it is so dangerous to give them more power: Incompetence, lack of adaptability, constant use of propaganda to try to disguise the facts and even repression when citizens complain.

The idea that shutting down the economy was going to be insignificant and generate no harm could only be something created by a bureaucrat and the idea that the recovery is going to be strong with more government intervention can only come from someone that has never created a job.

The measures implemented by governments in the Eurozone have one common denominator: A massive increase in debt from governments and the private sector. Loans lead the stimulus packages from Germany to Spain. The objective is to give firms and families some leverage to pass the bad months of the confinement and allow the economy to recover strongly in the third and fourth quarter. This bet on a speedy recovery may put the troubled European banking sector in a difficult situation.