Futures are off by 300. European markets are swan diving into solid cylinders of cement. And all of Saudi Arabia’s friends are severing ties with Iran.
The world is ending, once again. When the world ends, people get nervous. They fear their money will lose value, or their investments go bust. In the past, gold would serve as a safe haven. Nowadays, the hipsters toss the tips they make from bar tending into Bitcoins. The small pleb can play it via ETF now. How splendid.
For real players, however, men of industry and property, U.S. Treasuries and Japanese Yen is where you want to be. For treasuries, people enjoy having their money in the strongest and the best country in the world. Our military apparatus can and will lay waste to all other armies in the world, combined. That’s the true backing of the U.S. Dollar, see. It isn’t based upon economics, but safety.
The Yen is more of a doomsday clock scenario playing out, where an aging Japanese society, saddled with absurd debt, loses control of the “Yen carry-trade”, which eventually leads to the complete annihilation of the Japanese people.
This, of course, never really happens, only in Kyle Bass’s sick, demented mind.
Nevertheless, when risk assets are under pressure, people assume the loans taken out in Yen to buy stocks in Europe or America will pressure that trade to end. As such, FXY rises and ultra-bearshitters reap the rewards.
As you know, I cleared the decks before the New Year’s and have a very large portion of my assets parked in TLT. Until Exodus gives me my first trade of 2016, I am more than comfortable waiting for things to settle down long U.S. Treasuries.
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Dr. Fly – how do you feel about whiskey as a doomsday investment? (seriously)
I purchased some Pappy 20 yr as an investment for IBC a few years ago. I am up 4 fold so far.
Noted, and congrats..
All will be back to normal by 1:15 pm when the Fed buys back their overnight repo from 12/31. Looks like the banisters will get a little extra “vig” for their trouble.
Not bannister, banksters. F@%k these phones …..
Macke is a pretty good artist. I think if Macke did the charts and Le Fly did colour commentary the result would be epic.
If international markets are melting down doesn’t that make the U.S. a relative safe haven?
Great lesson. Not sure about the Pappy though.
By the way , I broke down and subscribed to Exodus. No clue what to do with it but I’ll read the tutorial and perhaps make an appointment with one of your consulting utilitariats.