Have you noticed that Trump hasn’t been bitching about the Dollar even once over the past few months? Which may come as a surprise as it’s remained on a massive tear higher for over two years now. One that has finally propelled it into shouting range of its coveted 100 mark. Maybe the Donald has finally realized that multiple efforts by the Fed to stomp it back lower have effectively been rendered fruitless. However despite an ever strengthening Dollar the U.S. economy continues to run on six cylinders. So it bodes the question: Does it matter? Can you have your economic cake and eat it too?
Over the course of my trading career one of the most reliable sell signals for gold in particular has been when a) it’s starting to climb vertically and b) the MSM starts to pimp it as a reliable ‘store of wealth’. The timing of the soon ensuing correction is almost always uncanny as one generation of gold bugs after the other loses their shirts in the obligatory take down.
With everyone squarely focused on equities I decided to lift the market’s skirt to get a better look at what’s happening ‘behind the scenes’, and mainly in the junk bond arena. Not a sector many people are in the habit of tracking but it is in government and corporate bonds where you usually see early rumblings of market upheaval that eventually makes its way into the stock market.
It’s going to be a bare bone post for me today as I’ve worked through the weekend (again) and am feeling the pinch a little. But things are transpiring swiftly across the board, so let’s proceed directly to the meat counter. Speaking of which, the bear is awake, and having hibernated several seasons he’s out for blood. So unless you run faster than 35mph you are officially breakfast and lunch. Now if you’re hailing from W. Virginia or Mississippi then you’re breakfast, lunch, and dinner 😉