Two weeks ago we warned of the "unintended consequences" of Dodd-Frank which are likely to crush bond market liquidity. On the day of Brexit we got a glimpse of what can happen when the world's most liquid bond market suddenly isn't and as one veteran bond trader exclaimed today, US Treasury market liquidity is "worse than Brexit."
Following the worst two-week loss for bonds... ever...
Donald Trump’s election victory has driven significant rotation across global markets. Bond yields are up, the USD has strengthened, DM equities have risen, EM equities have fallen and cyclical stocks have outperformed defensives. Amid the chaos, Citi's Global Equity Strategy team has attempted to craft some "Trump Trades" to help investors take advantage of the volatility.
By EconMatters
It appears things are coming together for an OPEC Deal in 8 days, the Oil Market is inching up, and we think it breaks out of the recent trading range next week to the upside. Iraq appears to be on board for an OPEC Deal as of Friday!
https://www.youtube.com/watch?v=OJ_P33Quj48
Gold ETF Holdings have collapsed by 1.93 million troy ounces in the days since Donald Trump's election. This is the biggest decline since July 2013, a period when gold prices plunged to $1200 before ripping almost 20% higher in the next few weeks.
Bloomberg reports that traders have raised bets on higher borrowing costs following President-elect Donald Trump’s pledge to boost spending and as U.S. data pointed to an improving economy. That helped send a gauge of the dollar to a nine-month high.
Submitted by Lance Roberts via RealInvestmentAdvice.com,