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Warning On Commodity Prices

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See here.

One of the most successful investment vehicles of the last decade could be sowing the seeds of the next financial crisis, a global financial watchdog warned.

Pension funds and retail investors could lose billions of pounds in investment schemes sold widely in the US and Europe with the promise of low costs and higher returns than bank deposit rates.

The products have enticed investors into the soaring commodities markets, allowing them to enjoy huge returns from the rising cost of oil, gold and silver in recent years.

The Financial Stability Board, which was created in the aftermath of the financial crisis to monitor financial transactions, said the rapid growth of exchange traded funds (ETFs) into a $1,200bn (£735bn) business was unnervingly like the derivatives market in sub-prime mortgages before the credit crunch in 2007.

Mario Draghi, the chairman of the FSB, said ETFs had all the hallmarks of a bubble waiting to burst and needed close monitoring by international regulators.

Yes, that'll be including gold then. Cue conspiracy theories.

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  • 276 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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