Triple-bearish-on-real-estate starting to kick it:
With the U.S. dollar collapsing under its own weight, and breaking key support…….
A number of weeks ago, I noticed the triple-bullish-on-real-estate fund, shown below, was breaking out of a big base, only to reverse almost instantly. This failed bullish breakout confirmed my general suspicion that, even in this new-highs-every-day environment, real estate was at risk. Let’s face it, an industry dependent uon super-cheap money can’t thrive in an environment of escalating interest rates. Since that failed breakout, it has sunk hard.
With the US dollar continuing to lose value (just like it did all of 2017), gold, and gold’s miners, are likewise continuing to strengthen. One chart in particular that stood out for me this morning was Yamana Gold, symbol AUY:
As the cryptos were going into a death spiral Thursday night and Friday morning, a couple of them caught my eye as good buys. I don’t trade the stuff (although some people have emailed me, encouraging me to do so), but if I had an account, I think I would have bought Ethereum when it was down about 45% on Friday morning. It recovered decently already, and its pattern was far, far better than Bitcoin’s.