Geopolitics and Market Review 1/7/2022

Commodities continue to fall on potential recession fears. Oil and US Natural Gas particularly with large drops this week. Metals also continue to drop now below $1800. Gold could be dropping in response to dollar strength. Historically, gold has done well in times of stagflation. It will remain to be seen if inflation is high when recessions are finally upon us, and gold might turn its current fortunes around. Although, history is never indicative of future performance. It can help to analyse, but every situation is different. One of my favourite quotes is by Mark Twain who said, “History doesn’t repeat itself, but it often rhymes”, which I find very fitting in the rapidly changing face of the financial markets.