Tony Grey Translates Market Reaction to Bernanke’s Speech: Confirms Chinese Market Growth
July 10, 2013 — Tracy Weslosky Publisher of InvestorIntel.com interviews Mr. Anthony (Tony) Grey about the market’s recent negative reaction U.S. Federal Reserve Chairman Ben Bernanke’s speech. Ben Bernanke’s suggestion that the central bank may scale back its long-standing bond-buying practice (also referred to as ‘quantitative easing’) that inputs $85 billion a month into the U.S. economy while intended to be taken as a sign of good news; instead his forecast of a gradual recovery in the U.S. economy sent markets into a panic with investors scurrying for cover. Bond prices plummeted to their lowest levels since the great bond crash of 1994; Gold dropped below $1,200 an ounce, a 34-month low; and Mortgage rates jumped to a two-year high.
Tracy starts with asking Tony to make sense of the market’s reaction and the associated confusion. He starts: “When he (Ben Bernanke) made that statement, which the markets took as quite negative — the fear was that interest rates would begin to go up and in fact they have begun to start to start to go up. And also that through the tapering less money/new money would be coming in and that spooked a lot of people. But in my opinion they got spooked for the wrong reasons; because his statement was based upon the perception on the economy was actually improving…markets are meant to reflect underlying economic activity and if that activity is getting better, which it clearly it is…you would expect the markets to reflect on the upside…”
Other topics include Tony’s position that China’s market continues to have positive growth and that the uranium sector is poised for growth.
Tony is a highly respected leader in our industry who is currently the Non-executive Chairman, International Ferro Metals Limited (LSE: IFL); Director, IC Potash Corp. (TSX: ICP | OTCQX: ICPTF); Director, Mega Uranium Ltd. (TSX: MGA); and sits on the Advisory Board for Hastings Rare Metals Limited (ASX: HAS). He was also the Former Director of the World Gold Council and the former Chairman of the World Nuclear Association.
Disclaimer: IC Potash Corp. and Hastings Rare Metals Limited are advertorial members of InvestorIntel.
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Tracy Weslosky is the Founder and CEO of InvestorIntel Corp., a company that publishes InvestorIntel.com. A leading e-news source for investors, entrepreneurs and industry leaders ... <Read more about Tracy Weslosky>