Regarding the fiscal cliff, Rickards mentioned that tightening fiscal policy (raising taxes/cutting spending) during a depression will hurt the U.S. economy and make the S&P less attractive in 2013. But he remains bullish on real assets (gold) going forward as the U.S. Dollar gets debased by the Federal Reserve. So, similar to 2009-2011, if the dollar breaks down, it will probably be bullish for the S&P in nominal terms. It is interesting that the S&P 500/US Dollar Index ratio actually peaked in early 2011, while the S&P 500 made new highs in 2012. We'll see what happens with economic growth, Treasury yields and inflation in 2013. Fun game. Happy New Year.
Jim Rickards on Bloomberg TV on December 31, 2012 (Source: Bloomberg.com)
Jim Rickards on Capital Account on December 12, 2012 (Source: RT)
Jim Rickards on Bloomberg TV on December 5, 2012 (Source: Bloomberg.com)