The median return for gold stocks in 2015 is +16.8%. Many are up more than 30%, very few are down. Silver stocks, as you would imagine, are up similarly. After that, marijuana stocks are higher by 11% and then, finally, REITs are up around 8%. Nothing else is up 5%, as a sector, not even biotechs.
These are degenerate, homeless man, winners.
In short, if you’ve managed to make coin this year, you’re either a bear shitting gold bug or chaser for yield, also a whore of another varietal. None of the risk sectors are working; and if you’re into making money off momo stocks, you’re gonna have to be quick. Bounces are being sold within a day or two and bonds are relentlessly trading higher.
Much of this is due to currencies. I’d like to chalk up the melt up in TLT to dollar strength, but that doesn’t explain it all. If that was the case, european bonds would’ve been trading down with their currency. That simply isn’t the case. Can it be oil producing nations finding safety in western bonds? Perhaps. I can’t imagine many Russian oligarchs wanting to keep their money in rubles these days.
Whatever the reason is, the perception is that something is wrong and that is hurting sentiment.
Either TLT drops $15 from current prices or the Dow falls 1,500 points. This deflationary scare cannot continue for too much longer, without it finally grabbing hold of equities, which is the proverbial ‘last man standing.’
Also, heading into the big ECB meeting this week, I am on edge due to expectations versus potential outcome. The europeans have a way to fuck things up and right now everyone is relying upon them to do something bold.
The last time europe did something bold is when Germany invaded Poland.If you enjoy the content at iBankCoin, please follow us on Twitter