Look at the gold price, discounting this BS talk of war but USoil is possibly implying supply issue if this is to happen?
Why is the local XGD getting thrashed today? In fact why is the entire sectors in red?
Bond yields are definitely heading to the moon which is obvious. We have not experience this type of scenario since pre-GFC growth. Any idea if this is supply chain issue on inflation or the US jobs is pointing to strong economic growth? I am now a bit more of the latter bias based on the continuing jobs improvement and wage growth.
After initial reaction to the potential for QT/rate rise, I thought the market was discounting taper tantrum with the X'mas spike rally but Jan is usually a bad month or the hangover from such rallies in the past. The 3 US major indices are all breaking LT TL now testing horizontal supports.
Gold is not the safety hedge and we saw that 6months before the GFC occurred so if history plays out once again, there could be some sobering moments in the gold space like every other growth sectors. Maybe its time to go defensive in high yield dependable stocks such as utility?
