Syria, Gold Prices and Asset Flows
Much of the financial media’s focus during this low-volume, last week of summer has been on what appears to be an impending US military response in Syria, and its potential effect on asset prices. One such projection that we have been hearing a lot of lately is “buy gold before the military strike, then sell it out once the strike begins.” Basically, a buy the rumor, sell the fact strategy which, generally speaking, is how markets react to major events.
However, there is another big component in this equation that is not being discussed: assets flows and investor positioning.