Anticipated Market Trends In Response To Tariffs - Add Your Thoughts
Over the next several weeks, as implications of the new US tariff regime are digested, the following are some near term trends that I am expecting to take hold:
Strengthening DXY dollar index as dollars are secured to pay-down offshore USD debt;
Rising bond yields as US Treasury bonds are sold to secure dollars;
Continued decline of general equity prices as slowing trade and higher yields are anticipated;
Increasing US bank sector weakness;
Rising gold price as a safe haven asset.
Agree / Disagree?
Please add your thoughts and comments below.
Best regards,
David Jensen
Gold and silver sold off for liquidity.
As usual, keep stacking physical and BTFD!
The 10 Y Treasury yield crashed below 4%, so many took perceived safety in bonds. With exception of the windfall the systemic banks got from their silver shorts, they have commercial loan issues not to mention the pressures from higher priced goods on consumers and inevitably, their loans. Businesses will pass on their costs to consumers and keep their margins temporarily until the consumer can no longer afford their mcmansions. Utilities seem like a possible refuge, but it also seems physical silver may cover deliveries at the Comex short term, yet retail silver orders that normally arrive in days are delayed weeks. Why? With a 100+ GSR and gold at all time highs, swapping a portion of gold for silver seems to make some sense once we find a silver bottom. Based on last week, this is the first time in a long time there seems to be no circuit breakers or plunge protection team. The last time the dow had a 1000 point drop, eight brokerage conveniently had online tech problems. No so last week. If the KBE or banks tank, then the Fed will QE and silver might soar. That is my game plan, but only if I can remain solvent till the Fed acts.