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Eveillard - This Fed Manipulation is Incredibly Dangerous
With most global stock markets moving higher, oil surging, and the Dow trading at the highest level since December of 2007, today King World News interviewed legendary value investor Jean Marie Eveillard, who oversees $50 billion at First Eagle Funds. Eveillard told KWN that the authorities should not be in the business of manipulating equity prices because it is extremely dangerous. He also discussed the gold market, but first, here is what Eveillard had to say about what is happening with stocks: “This has been artificial stimulation. Savers are being sacrificed today. With short-term interest rates basically down to zero, and long-term Treasury bonds yielding very little, the authorities are trying to push the savers into equities. That’s the wrong thing to do.”
Jean-Marie Eveillard continues:
“The authorities should not be in the business of manipulating equity prices or manipulating any prices for that matter. They should let the markets clear. The Federal Reserve has placed a floor under the equity market, so traders and investors are taking advantage of it.
If there is a floor under the equity market, well, it cannot really go down or at least not by much, it can only go up. Now, to some extent it’s a dangerous game because you don’t want the authorities to try to manipulate investors and traders into doing things they shouldn’t be doing....
Continue reading the Jean-Marie Eveillard interview below...
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“In the end, of course, it will be the fundamentals that will prevail. To the extent that the policies of the Federal Reserve and of some other major central banks have been inflationary, this probably will have negative unintended consequences. The bottom line is the Federal Reserve is doing things they shouldn’t be doing.”
Eveillard had this to say about the gold market: “Even though I’m positive towards commodities, I don’t look at gold as a commodity. At the current level, I look at gold as a substitute currency. What matters is whether there is investment demand or investment supply.
In other words, there has been good investment demand over the last ten years. Today, the central banks and a number of individuals like me, who are worried about the future, have been buyers. So, gold, I don’t look at it at all as a commodity.
I’m saying that I continue to hold gold and possibly buy more because I think that the policies that are being followed will have negative unintended consequences that will appear at some point.”
The written portion above is just a small part of the tremendous interview with Jean-Marie Eveillard. The KWN interview with Eveillard is now released and you can listen to it by CLICKING HERE.
The Dr. Keith Barron and Eric Sprott audio interviews are available now. And be sure to listen to this week’s incredible line-up of other KWN interviews, which include Egon von Greyerz, Rich Yamarone, John Embry, Jim Sinclair and John Hathaway. You can listen to these interviews by CLICKING HERE.
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
May 1, 2012
