An unknown medical doctor turned investor and hedge fund manager - Michael Burry - created the first bets against the subprime mortgage market in 2004, long before John Paulson, Goldman Sachs, and the rest of the investment world caught on. Working alone, he made $100 million and $725 million for his investors. A fascinating read that offers a glimpse inside the mind of a contrarian investment prodigy.
The US and overseas markets have become tightly-linked, at least from the point of view of dollar-based investors. While there was a time when share prices here and elsewhere moved to their own tunes, that no longer seems to be the case. Emerging market returns have also become increasingly correlated to those of the US.
Larger US budget deficits will ultimately be financed by the Federal Reserve through monetary creation which promises to bring depreciation in the dollar both in terms of its foreign exchange rate and in terms of its domestic purchasing power. All these factors are very positive for gold over the longer run as is the strength of demand that will come in from Asian economies.