Markets have been making it very clear that all is not well in the global economy. What does this mean for your portfolio, and how should you position yourself?
What about demand? The narrative runs along the lines of, “lower USD boosts demand by lowering the price of a commodity in other currencies”. How true is this?
QE is blamed for causing higher commodity prices by debasing the USD. But a weaker USD on its own does not lead to higher commodity prices; quite the opposite!
Does QE lead to rising food prices? A chart of food prices vs bank reserves would suggest that it does. But remember that correlation is not causation!