Loading ...And just so we’re clear as to what’s happening here. The mother of all safe haven trades is emerging. Trade Wars, Near Hot Ones, tariffs, sanctions, popular uprisings and political instability are all on the table.
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While we’re all focused on whatever short-term idiocy comes out of Donald Trump’s mouth to secure his control over the Overton Window, we should be asking ourselves why the ECB is going looking at even more negative rates, LIBOR has inverted alongside Eurodollar and the U.S. Treasury market and stocks are at all-time highs.
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The markets aren’t irrational. Our perceptions of what is driving this behavior is. Safe haven assets change with the times.
And when you step back from the insanity of the fiscal and political situation in the U.S. and Europe, the fall-out from their instability on emerging markets and the potential for major shifts in the geopolitical game board
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does it really seem all that odd that gold with high trust and low holding risk would become a darling of the risk averse?