With zero-interest rates and quantitative easing, there is no need for countries to borrow money because they can start printing it. At the same time, China controls more and more business processes which leaves less to companies that operate within Goldman Sachs' merger and acquisition world.
Taken even further, market economies could come to an end because they cannot exist in a world where China can be a loss-leader in every strategically important market. If China is poaching TSMC's engineers [1], what does stop them from doing that to all relevant production processes? Either TSMC and all the other companies need artificial profits to pay more to their engineers or there need to be other barriers. Either way, the importance of markets could decline and so could Goldman Sachs.
I constantly hear Robinhood type traders (errr, I mean investors) saying a wave of inflation is coming. While true that an inflationary environment is good for gold, I am not sold on massive inflation coming. Also does not help that gold is at all time highs. I sold out of my position of Barrack about two months ago; perhaps I was a bit early, but I'll take the profits.
Looks more like a hedge to me, but I think you are right. It's a signal. Most people will confuse this with noise, ignore it, and move on.
Even if it's not a big deal considering the overall Berkshire investment pool, this is a considerable divergence from their strategy so far. Very telling.
With zero-interest rates and quantitative easing, there is no need for countries to borrow money because they can start printing it. At the same time, China controls more and more business processes which leaves less to companies that operate within Goldman Sachs' merger and acquisition world.
Taken even further, market economies could come to an end because they cannot exist in a world where China can be a loss-leader in every strategically important market. If China is poaching TSMC's engineers [1], what does stop them from doing that to all relevant production processes? Either TSMC and all the other companies need artificial profits to pay more to their engineers or there need to be other barriers. Either way, the importance of markets could decline and so could Goldman Sachs.
[1] https://news.ycombinator.com/item?id=24129861