Stocks are rapidly erasing yesterday's "making strides on taxes" gains as Trump's government shutdown threats remind investors just how fragile this whole facade is. The 'risk-off' trade is evident everywhere with Treasury and Bund yields tumbling, gold up, and USDJPY sliding.
Bond yields are tumbling - erasing all of yesterday's losses - Gold is back at yesterday's highs, and the dollar is leaking lower...
Global Financial Crisis 10 Years On: Gold Price Rise Over 100%
– Gold price up over 100% in major currencies since financial crisis– Gold up 100% in dollars, 124% in euros and surged 200% in sterling – Gold has outperformed equity, bonds and most assets– Gold remains an important safe-haven in long term
Gold prices from August 9th 2007 to August 9th 2017
Authored by 720Global's Michael Lebowitz via RealInvestmentAdvice.com,
“Valuations are still well below the peak of 1999” say the bulls. They are certainly correct from an absolute basis but we caution that the current level of market euphoria is in a league of its own when compared to prior peaks on an “apples to apples” basis.
If yesterday's tape bomb came courtesy of the most prominent UK subprime lender, Provident Financial, which plunged over 70% after it gave a "clearly awful" business update coupled with the resignation of its CEO, today's market shock belongs to ad giant, WPP, whose shares crashed the most since 2000 after the world’s largest advertising company cut full-year revenue forecast amid lower spending by customers, while reporting dreadful Q2 earnings.