After all, you can own something that’s in someone else’s legal possession. For example, I own a house in Cape Town. My tenants have formal right of possession under a lease. I sleep at night because the sheriff of the Simon’s Town Magistrates’ Court will enforce my superior right of possession under South African law if needed — say, if they stop paying rent.
The market’s initial response to the U.S. presidential election debate overnight was a clear sigh of relief. The Mexican peso, which had hit a record low against the dollar just the day before, surged higher, as too did the Canadian dollar, Japanese yen and global stock index futures. However most of those moves have already reversed as traders were quick to take profit, knowing full well that a TV debate may not necessarily affect the outcome of the actual votes in a meaningful way, especially those of the die-hard supporters of Trump and Clinton.
Gold moved about $30 last week and many investors view this fact as a bullish sign and indication that much higher gold prices are likely to follow. Is this really the case? Let’s take a look at the gold charts.
In previous articles, we examined gold’s performance in the presidential election cycles. The only relatively reliable conclusion we were able to draw from the long-term analysis is that the post-election year is the worst for the price of gold in the whole cycle. Let’s now focus on gold’s short-term dynamics around election time.