Namely, speaking with Kitco news, Robert McEwan, the Chairman, and owner of McEwan mining and former CEO of Goldcorp, concluded that the Fed’s hawkishness would continue; however, it will not be enough to stave off a hard landing as he sees things developing. Investors have seemingly accepted that there will be a 75 basis points hike, an increase from the expected 50 initially expected, which sent the markets tumbling, bond yields rising as the yield curve inverted and pushed the markets into bear territory. Moreover, McEwan shared his thought on quantitative easing, claiming that it will probably be reduced or stopped altogether in the coming period.
Creation of a monster
Additionally, as per McEwan, monetary expansion seen in the previous years coupled with low-interest rates has ‘created a monster,’ which will require more time to be tamed, possibly creating a recession in the near to medium term. This could lead to a major market correction, further aggravated by geopolitical tensions like the war in Ukraine and tussling with China in the Chinese sea. Conversely, the macro events could likely play a major role in gold rising, as McEwan was quoted from earlier interviews on his belief that gold could hit $5,000. Asked again to elaborate on when this could play out, he stated: If these predictions come true, that would probably mean that the broader markets have suffered a lot of pain and have possibly moved down another 30-50%. In essence, this bleak picture painted by the metals specialist indicates that now is not the time to be heavily invested in risk assets but rather to be prudent and hedge your bets across a well-diversified portfolio of investments. Watch the full interview below: Featured image via Kitco YouTube
