Here’s an article that makes the case for continued low inflation.
Monday, stocks closed down 0.3% in Asia but gained 1.7% in Europe. Markets in the U.S. were closed for Labor Day. In anticipation of the October Surprise and recognizing the hyper-valuations of stocks, my strategy has been to move all stocks except precious metals and conservative mutual funds to cash. In addition, my portfolio holds insurance against precious metal stock downdraft as well as an anti-stock position. As always, this is not a recommendation but just a disclosure. The next few weeks could be wild as the powers that be seem to need a market crash to defeat President Trump at this point.
Tuesday, stocks ended unchanged in Asia, fell 1.1% in Europe, and fell 1.8% in the U.S. on very high volume. The real action was in the NASDAQ — which suffered a 4.1% loss. Apple lost 6.8% — declining well below the 120 benchmark. The VXO ramped up 8% to close at 32.03. The 10-Year U.S. Treasury bond yield fell 5% to close at 0.68. The Dow and NASDAQ closed below their 27,000 and 11,000 benchmarks respectively.
Wednesday, stocks in Asia fell 0.7%, in Europe gained 1.7%, and in the U.S. gained 1.6% in the U.S. on high volume. The VXO fell 11% to close at 28.47. The 10-Year U.S. Treasury bond yield rose 3% to close at 0.70. Precious metals gain 1% while their miners shot up four times that amount. The NASDAQ recaptured the 11,000 closing benchmark.
Thursday, stocks in Asia gained 0.5%, fell 0.6% in Europe, and fell 1.8% in the U.S. on high volume. The VXO moved up 10% to close at 31.19. The 10-Year U.S. Treasury bond yield fell 3% to close at 0.68. Precious metals miners lost 2%. The NASDAQ relinquished the 11,000 closing benchmark. Here’s an article that articulates the wealth disparity fostered by Fed policies.
Friday, stocks gained 0.6% in Asia, slightly in Europe, and 0.5% in the U.S. on strong volume. The VXO fell 11% to close at 27.82. The 10-Year U.S. Treasury bond yield fell 2% to close at 0.67.