After a year of almost uninterrupted bullish bias in precious metals options markets, gold skews (the 'price' of put protection over calls) has exploded to its highest (most bearish) leves since July 2015.
As Bloomberg reports, bearish options hedging against a 10 percent price drop in the biggest gold exchange-traded fund cost the most since July 2015 relative to calls betting on a 10 percent jump.
More Lies From The Experts
Get Trump at all costs
Paul Craig Roberts
As flyover America has been suffering economically for many years, these Americans were immune to the oligarchy’s anti-Trump propaganda. However, everyone else in the country was taken in by the propaganda—liberals, progressives, the remnant of the leftwing, and even Patrick Martin of the World Socialist Web Site who normally writes intelligent commentary.
It’s time to take off the dollar blinkers, exclaims Bloomberg's Mark Cudmore, and take stock of what’s really going on in markets.
The dollar has been so strong since the election that it’s clouding the vision of all US-centric observers. Any market decision requires an accurate assessment of the state of play. So apart from the roaring greenback, what are the other themes?
The long-end of the US Treasury curve rallied on the week (for the first time since Trump's win) with 30Y yields ending down almost 3bps, as a last minute panic bid hit stocks and bonds at the early market close; and despite the exuberance in US bank stocks, the yield curve continues to collapse...
At the cash equity close today, bonds and stocks were suddenly both bid... with 30Y back at 3.00%
10Y and 30Y yields ended the week lower for the first time since Trump but the short-end remained weaker...
Submitted by Brendan Brown via The Mises Institue,
Can Trump-economics prevent the asset price inflation now infecting the global economy — with its origins in the radical monetary experiment under the Obama Administration — from moving on to its late deadly phase?
Two Options: "Economic Miracle" or "More of the Same"