Concerns arise around the current dispute/competition between Germany national law and EU law, German monetary orthodoxy and ECB quantitative easing…
According to a few analysts, Germany do not accept the ECB vast policy of quantitative easing and its recent move towards massive public bonds purchases to insure low yieds on national debt to fight the Covid-19 recession throughout Europe.
Honestly I don’t know if the EU survival is or isn’t at stake. But I am quite pessimistic for the common currency future. it depends … A move from Germany and Netherlands towards debt mutualization can save the eurozone. Germany along with all 18 other states know very well that German trade benefit in the EU are just composed of debt from other states.
Please read below a few articles (in French) about the current deadlock and opinions about the future of the €… Keep in mind also that the CHF is rising a lot in spite of the Banque Nationale Suisse attempt to keep the CHF superior to 0,95 euros. What happened to former rate of 1 EUR = 1,20 CHF ??? It collapsed.
But of course I also read articles about German willingness to pay … for … latin countries…
We’ll never be able to forecast what will happen.
I think financial markets are going to shrink for a while. It might be the good time to invest in stocks and NOT IN GOLD (Gold is quite expensive now unless you want to keep it for a least 15-25 years).
You should buy gold when the financial situation is good and gold affordable (when nobody want to buy gold and rush into stocks) and buy stock in the middle of a financial crisis (when nobody want to buy share and rush into gold). Of course you need to be strong enough to have such a foolish behavior, a little crazy perhaps.
When a lone wolf is acting alone against the will of the crowd, he will always be considered as a crazy person. Isn’t it what the movie “the big short” is all about ??? But at the end of day… the lone and stubborn wolf is making money and all the others are loosing….
Yes, financial markets are gonna bounce back … !!!