Am I obsessing much about this? I know that I should be celebrating this reinvigorated splendor, joining the party to partake in ritualistic slaughtering of the bears — but I’m not ready to make that plunge just yet. Plus anyway, you and I both know the second I commit to the long side, the market will forever top and then come crumbling down like a piece of pound cake lodged in a glass of milk.
The yen just took out 115 v the dollar — as dollars storm troop higher across the globe. The euro has been CRACKED ASUNDER — at the 105 level, off by another 0.7%. The obvious victim in all of this, aside from SPY earnings estimates which will soon be getting slashed (you read it here first), is the price of gold — now off by nearly 1% to 10 month lows.
Isn’t it amazing how this once proud and richly rewarded commodity is now the bane of existence? Year to date, gold miners are still higher by 84%, on a median basis. However, over the past 3 months, they’re lower by 20.6%.
Over the same time frame, bonds have been eliminated from the game of play — with shares of $TLT off by an astounding 12.9%. All of its gains have been revoked for 2016. Easy come, easy go.
The carnage isn’t isolated to just government bonds. Both $PCK and $MNE (Cali and NY munis) are lower by 12% over the past 3 months.
On the plus side is copper, steel, banks and airlines, all higher by 30% over the past 3 months. It’s very important to take notice that the market is rewarding value stocks, via the reflation trade, and not traditionally labeled growth, a la tech.
Both the high growth drug and tech sectors are flat. FANG stocks are slightly lower over the past month — completely missing out on the big Trump trade. The fact that we’re seeing value or beaten down sectors outperform is indicative of a profound character change in the markets.
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I’ve found 2 things in this rally:
#1: Travel outside the US is awesome. Way better deals on international flights and cheaper overall (food, hotels) in other countries.
#2: Shopping outside the US beats local stuff (local high end stuff anyway) even with shipping. I bought some high end espresso machine for $120 cheaper even with shipping from Canada vs locally with a 20% discount … the tax alone here negates international shipping. The Canada price of the until was well below retail in US dollars here. I even got it cheaper than Amazon which frankly I didn’t think was possible.
So having a super high dollar ain’t so bad! Just spend it outside these here walls.
It’s great for consumers.
Funny, I was thinking the same thing about the U.S. a few years ago! Glad I took the family to Hawaii when our dollar was on parity.
Link to espresso machine? Let me look
I think this is it…
http://www.ebay.ca/itm/122086573046
No one smells the rat yet? Keep em coming
Wall st are such tools lol
the sub-prime mortgage crisis generated a bankruptcy in 2006 and another April 2007. But they got brushed off so to say. now we are getting a bank failure in europe and if it happens watch out. but thankfully ECB have stated catagorically there shall be no defaults. let’s see what happens this time. they are sitting on powder keg.
+127 dow
this is your government playing warfare on your next candidate
guys call it out
So, the two hottest items this Christmas are an egg you rub for an hour in order to hatch something and a video game system with 20+ year old games? Tech is dialed in.