Back from Europe, I had a very tranquil time with some of my extended french family over the past two weeks. Bretagne by the sea is enchanting. The thing that struck me the most while shooting the breeze with my cousins, was the complete disconnect between the serious economic down turn they are now facing, that is expect to get much worse, and the CAC 40 stock market which is on an absolute tare. Something doesn't add up here, and it smells like the stench of rotten fish guts on a Normandy dock.
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Safe Havens No More? (by Closing Basis)
I just wanted to share a couple of charts we all need to be keenly aware of right now. Over the past couple of years both together and separately, gold and bonds have been the safe havens against market risk. Now they are ALL breaking below major support levels.
This seems to confirm the perception that the economy is improving (regardless if it is all an illlusion or not). If, in fact, money is coming out and seeking riskier assets, it is quite possible that we see a lot more upside from where we are right now (I still think we correct in the next month though). These assets holding up were holding me to a more bearish bias, but now that they are breaking down and investors are voting with their dollars, it has become a lot more plausible to me that, at least for now, the long-term trend trend for equities in general has indeed turned upwards.
