Asset Allocation for February 2017

Gold started 2017 with rising prices on investors’ fears that the oncoming both internal and external US policy would be defiant.

Donald Trump became the 45th President of the United States and during the first 10 days after inauguration surrounded himself with disturbed yell of Americans, Muslims and the biggest corporations. The apprehensions of many popular economists have become reality – Trump’s policy may have chaotic impulsive nature and deliver new risks to world economy and geopolitics.

Despite Trump American equities continue to stand near historical heights. Corporate earnings season is full of mixed results: shares show poor grow even after strong 4Q statements.

Gold prices moved higher on investors’ nervousness. Its growth was supported by US dollar weakness.

In February United Kingdom is to approve BREXIT procedure plan. We expect new nonsense initiatives from Donald Trump.

Threat and challenges in world markets:
-  Worldwide oil production cut possibility
-  BREXIT aftermath – EU disruption and political crisis
-  Monetary policy tightening by US FED

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