Matterhorn Asset Management

IT AINT OVER ‘TIL THE FAT LADY SINGS
by Egon von Greyerz

Spring is here and optimism is creeping back into the world economy. In this newsletter we will discuss why there will be a long time before the fat lady will sing (for explanation see Wikipedia). In our view we are still in the first act of three in a drama, the outcome of which will dwarf the most tragic of Wagner’s operas.
In our January 2009 Newsletter we forecast that there would be a correction up in the US stockmarket similar to 1930 when the market went up 50% from the low and then declined by a total
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Gold outperformed most assets in the first quarter of 2009.

On the Matterhorn Asset Management website the  Gold charts pages show that  gold gained between 4% and 7% against major currencies  in Q1 2009. In spite of being well off the highs for the quarter gold still showed an excellent return.

But even more importantly the Dow Jones declined 17% against gold in the first quarter with similar falls for most major stock markets against gold.

In the last four years, since the beginning of 2005, gold has gained over 75% against the dollar, 100% against the Euro and 170% against the pound whilst the Dow has lost 62% against Gold in the same period.

Not
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This week there will be a meeting between G20 leaders and central bankers in London to save the world economy.

Let us make it very clear – the meeting is bound to fail. There is no chance that the G20 leaders will reach an agreement that will save the world economy. Even two world leaders can’t agree on how solve the biggest global financial crisis that the world has ever encountered, never mind twenty.  Each one of twenty leaders has a different political agenda and they will all blame each other, so there is no possibility whatsoever that the meeting will result in more than the normal platitudes about cooperation  to
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GOLDEN TIMES AHEAD
BUT ONLY FOR OWNERS OF PHYSICAL GOLD
by Egon von Greyerz
In this month’s newsletter we will discuss why physical gold is the most important and probably the only asset to protect investors’ wealth from total destruction in the next few years. Gold will not only preserve investors’ wealth, it will also continue to greatly enhance their wealth just as it has done for the last ten years. In 2002 Matterhorn advised investors to put up to 50% of their liquid assets in physical gold. Since then gold has appreciated over 200% against most currencies. But we believe that the big move in gold is still to come as we
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The bankrupt saving the bankrupt
by Egon von Greyerz
Who will save the UK?

Last month we said that the UK will follow Iceland in a hyper inflationary financial depression. Just one month later our predictions are being confirmed both by events in the UK economy as well as by forecasts from the IMF several economists and money managers.
If we look at the chain of UK debtors, every link is on the verge of bankruptcy.

The UK consumer debt is higher than GDP and unsecured personal debt is twice the level of the rest of Europe. The UK consumer debt has been built up during good times and there is no possibility that this
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