The QT was in motion pre-pandemic although one can argue it was at breaking point with the yield inversion followed by the repo rates spiking in 2019. I think the addition to QE can be studied from those events. This time around, the stock asset bubble is even larger simply because Feds rate of QE was unprecedented, QE1-3 condensed in a few months. If you were a trend follower, you simply follow it to invest accordingly and to pick a top is futile.
Here comes the hangover, I think only certain naïve folks thinks it will never happen with full leveraged exposure. Now, did you take advantage in April 2020 from that big crash? I didn't even though I was very lightly exposed. The size and rate of the fall was simply mind boggling and unfortunately I was expecting the dead cat bounce before the recovery!
Look at the local XGD, the worst sector today and XJO simply had a bounce at the open and sellers came rushing back in. Gold is screwed and it does not matter if they were manipulated. At least for Bitcoin, there were opportunities to square off at the peaks while gold was left for dead from the 2020 high. Death by a thousand cuts, gold was never about wealth making unlike Bitcoin and in fact it is a slow boat to wealth destruction!
The gold space is increasingly being captured by cryptos in general and personally stubbornness is my issue, just old school but I am changing ever slowly my perception that Crypto is not a scam unless one is into meme coins.
I think with Powell's hawkish stance yesterday, prepare for some very volatile movement and gold is getting hammered more than risk/growth sectors. Be careful what you wish for ...
