How much longer can this continue before the crocodile's mouth snaps shut?
(S&P 500 in green vs. US 10-year inverted in RED) Source: Bloomberg, www.zerohedge.com
10-Year Treasury Auction was awarded a 4.68% yield, the highest since 2007 🚨
Source: Barchart
Bitcoin Head & Shoulders Pattern?
Bitcoin is showing signs of a strong reversal candlestick today (keep an eye on the close). A Head & Shoulders pattern is starting to form, though it's not confirmed yet. The recent close below 92,143 suggests some weakness, and the level to watch is the 91,306-92,14 zone. If this level breaks, fasten your seatbelt! Source: Bloomberg
Yields on 10-yr Treasuries are now the highest vs 2-year rates since 2022.
It's unclear whether this is a healthy normalization - a reversion back to the typical relationship of long-term yields being higher than short-term ones - or a sign of stickier inflation and deficit fears. Souce: Bloomberg, Lisa Abramowicz
Canadian Prime Minister Justin Trudeau announces resignation
Justin Trudeau’s popularity has been at a historic low after voters and members of his own party turned against him following a turbulent period of speculation about his ability to govern the G7 country. Source: FT
BREAKING: The dollar dropped and stocks surge after the Washington Post reported that Donald Trump’s aides are exploring tariffs that would apply to every country, but only cover critical imports
See the kink to our 10 surprises 2025 (surprise #1: Trump 2.1 "(...) What if concerns over the inflationary effects of tariffs prompt him to pivot, adopting a more conciliatory approach with trading partners—a shift from Trump 2.0 to Trump 2.1): https://lnkd.in/eKXRsc58 Source: MenthorQ, Bloomberg
European stocks trade at over 40% discount versus the US stock market, the biggest in at least 35 YEARS!
This comes as Europe's forward P/E ratio is ~13x, way below the S&P 500 P/E of 22x. Europe has rarely been so cheap on a relative basis. This is also valid on a sector-adjusted basis. Source: Goldman Sachs, Global Markets Investor, Datastream
🚀 JPMorgan analysts said the "debasement trade" is far from a passing trend, with both gold and bitcoin gaining structural importance in investor portfolios.
🚨 "The gold price appreciation over the past year has gone well beyond the moves implied by dollar and real bond yield shifts, and likely reflects the re-emergence of this 'debasement trade,'" JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report on Friday. Meanwhile, a record capital inflow into crypto markets in 2024 suggests that bitcoin is also becoming "a more important component" of investors' portfolios, they added. 👉 The debasement trade refers to a strategy where investors turn to assets like gold and bitcoin to hedge against the devaluation of fiat currencies, often driven by factors such as inflation, rising government debt and geopolitical instability. 🔴 Overall, with both gold and bitcoin gaining structural importance, the debasement trade is here to stay, according to the analysts. Last October, the analysts expressed bullishness on crypto heading into 2025, citing factors such as the debasement trade and growing institutional adoption, among others. Source: The Block Disclaimer: These are not investment recommendations. Cryptoasset investments can be complex and high risk.
