Clem Chambers, Founder of ADVFN, joined today’s Tip TV Finance Show to discuss the prospects of a Santa rally, outlook for Gold and EUR/USD, and why there is still some QE going on in the US.
Chambers starts by commenting on the santa rally’s prospects, noting that if the central banks want a year-end rally, they’ll get one. He further adds that the rally wouldn’t be massive, but the stock market remains perky, kind of expressing desire for a santa rally.
Gold: Good levels to buy
Chambers believes that current levels in Gold offer good levels for a buy, but the long-term. On the short-term, he expects the precious metal to remain choppy in a range.
EUR/USD: Remaining short
Chambers mentions that he remains a EUR bear since a long-time, and the single currency has only one way to go versus the dollar. He believes that the QE ahead in the Eurozone and the Fed interest rate liftoff will keep the bias for EUR/USD as lower.
Adding to this, he says that this remains a more of a EUR trade than the dollar. On the USD, he sees the interest rate hike ahead driving borrowing lower.
US: Constant churning of QE money
Speaking on the US economy, when questioned why the strong dollar and worry with exports have still led the equities to rally, Chambers explains that this is because of money supply. He believes that the Fed has stopped QE, but they still have QE.
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