If one had a crystal ball end of 2015 and knew in advance that British would vote for leave in June, Trump would get elected in November and Renzi would resign in December 2016, then he probably would buy gold and sell equity. And unfortunately that person would lose money even with perfect foresight of political events.
However, if he did the same exercise end of 2016 and knew in advance that May would trigger Article 50 end of March and call a snap election in April, the defeat of the anti-euro party in the Dutch election, Erdogan’s win in the Turkish referendum, and Macron’s win in the first round of the French election, would that person sell gold and buy equity? Probably so……and that would have made him decent gains.
At the end of the day, in your opinion, should one trust a crystal ball that predicts political events?