Guys, interesting commentary on K!tco today which shows just how...

Guys, interesting commentary on K!tco today which shows just how difficult/convoluted the situation has become.

One would think that in times of strife there is a move to the safety of PMs - in the normal course of events.

What this article is saying is:

a) The USD rose after the Ruskies said NYET to opening natural gas pipeline to EU
b) OPEC+ decided to cut production to increase price
c) ECB is expected to raise r by 0.75 and Aus/Canada have already increased rates
d) China will ease monetary policy as the Covod lockdowns have weakened the economy

So it appears that investors are piling into US stocks even though there is likely to be a difficult autumn in that market BECAUSE there is nowhere better to shelter from the turbulence in global markets. The US looks least challenged in a very challenging world - apparently. So risk assets (US stocks) have become safe-haven assets which were once the PMs?

The questions that arise are:
1) In such circumstances why are they not fleeing into PMs (the only reason I can think of is that there is a view that POPMs will not rise even if they pile into PMs), and
2) Markets around the world generally follow the DOW/US markets so are they saying "not this time" - this time is different?

All very interesting indeed.