A. Portmann's  Instablog

A. Portmann
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I have over 15 years of experience in the banking and finance industry. I hold a BBA and am a Certified International Investment Analyst (CIIA) and portfolio manager. I am the fund manager at GPA Portfolio Management in Zurich, Switzerland. We offer professional portfolio management with a... More
  • Cyprus: Just Another EU Country That Needs To Be Saved By The ECB 0 comments
    Mar 21, 2013 5:56 AM

    As the markets are focusing on what is currently happening with Cyprus I cannot stop wondering how ignorant politicians and investors have become.

    I just read this article on Bloomberg.com:

    "Stocks and the euro gained as investors speculated that the European Central Bank, whose Governing Council meets today in Frankfurt, will continue to support the country's banks."

    OK. Now why is this good news?!?

    Cyprus and its banks are just the next in a long and growing line of countries that had to be saved by the European Central Bank (ECB).

    Where is this going to end? Guess the ECB will be holding tons of crappy EU government bonds. And more importantly, the ECB continues to pump huge amounts of Euros into the market.

    In such a situation I believe having some gold in your portfolio makes a lot of sense. Gold still is the only currency that cannot be devalued by central banks and that has no sovereign risk.

    And by the way: Italy still has no government in place. New elections seem to become more and more inevitable. Not good news for the Euro Zone.

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