Although the probability of any one of the predictions coming true is low, they are deduced strategically by Saxo Bank analysts based on a feasible - if unlikely - series of market and political events. As Saxo's chief economist notes, "This
isn't meant to be a pessimistic outlook. This is about critical events
that could lead to change - hopefully for the better. After all, looking
back through history, all changes, good or bad, are made after moments
of crisis after a comprehensive failure of the old way of doing things. As
things are now, global wealth and income distribution remain hugely
lopsided which also has to mean that significant change is more likely
than ever due to unsustainable imbalances. 2014 could and should be the year in which a mandate for change not only becomes necessary, but is also implemented."
These Outrageous Predictions are not Saxo Bank's official calls for
2014, but rather an exercise in feeling out the major risks to capital
preservation, and intended to encourage investors to prepare for the
worst case scenario before trading or investing...
Saxo Bank's Outrageous Predictions 2014
1. EU wealth tax heralds return of Soviet-style economy
Panicking at deflation and lack of growth, the EU Commission will
impose wealth taxes for anyone with savings in excess of USD or EUR
100,000 in the name of removing inequality and to secure sufficient
funds to create a "crisis buffer". It will be the final move towards a
totalitarian European state and the low point for individual and
property rights. The obvious trade is to buy hard assets and sell
inflated intangible assets. (more)
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