The correlation was weaker in the 1980s/1990s, but starting after 2000, gold has historically done quite well whenever the Fed pauses or cuts
Source: Lyn Alden
Top 6 banking ratios every investor should know
Trade Brains
Where do we stand in terms of percentile each year for the below aggregates in the US:
- US Government Debt to GDP = 98th percentile - SP500 Cyclically-adjusted-PE ratio = 99th percentile - US Consumer Price Index YoY change = 88th percentile Sounds like an interesting trifecta... Source: Crescat Capital
Disinflationary forces are intensifying in Germany, at least for now
German PPI deflation deepened with PPI down 14.7% YoY, the most since the start of the statistic in 1949. Even compared to the previous month, producer prices fell by 0.2%. Source: HolgerZ, Bloomberg
Oil vol, OVX, and gold vol, GVZ, have exploded higher and continue to stay at elevated levels/move to new recent highs
These are the two assets to watch for the "real" war stress. Source: TME, Refinitiv
US yield curve keeps bear-steepening w/2s/10y spread jumps to -19bps after Fed's Powell has given 'green light' for higher long-term bond yields with the 10-year near 5%
Source: Bloomberg, HolgerZ
MARKET BREADTH NEGATIVE ALERT >>>
SP500 Market Breadth drops to lowest level of the year as only 35.38% of Index Stocks are trading above their 200 Day Moving Averages Source: Barchart
China Injects Most Short-Term Cash Into Banking System on Record - Bloomberg
China pumped the most liquidity into its financial system via short-term monetary tool on record, suggesting policymakers are keen to keep funding costs low to bolster the economy. The People’s Bank of China granted lenders a net 733 billion yuan ($100 billion) of cash with the so-called reverse repurchase contracts on Friday. That came after data released this week flashed signs of a pickup in the economy last month, when consumer spending and industrial production came in stronger-than-expected. Lenders keep one- and five-year loan prime rate unchanged. Source: Bloomberg
