Currencies
However, in the long run, the rise of rising political uncertainty is still present in the Euro area, with 30 percent of the jobs currently at risk. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. As part of a global trend called “de-dollarization”, some countries including China have been taking steps to reduce reliance on dollar reserves, which has included the purchase of gold. They also helped to power a fall for the dollar, and a big rise in gold, which is now closing in on its record high, set earlier in 2012. Naturally that implies that more dollar weakness would be helpful: Many careers have been lost betting on European value, or betting on the continent to outperform the U.S. Figure 2 Source: CFTC With EU leaders showing some signs of coordination, the euro could experience a little rally in the coming months, especially against the US dollar.
The U.S. dollar is declining in value, and U.S. real interest rates are hitting record negative levels.
Metals
The situation in silver today is far different than it was months ago when I wrote “SLV: Deflation Will Be Temporary, Silver Is Eternal.” (Pexels) One of the top-performing assets over the past few weeks has been silver and silver miners. In general, the core portfolio is focused on gold & silver miners which have large silver operations, while exploration and opportunistic are focused exclusively on silver. The silver ETF (SLV) and the silver mining ETF (SIL) have seen very strong inflows over the past few weeks. Back then, the silver market was in despair, as silver was at a level where many miners could not make a profit. By combining momentum with strong fundamentals in a strong economic environment for silver, I believe we can target achieve strong returns. If gold makes new highs, it is possible silver will eventually surpass its past peak, likely bringing silver miners up by triple digits.
Oil
Other highlights on this morning s reporting agenda include food behemoth Unilever NV, oil major Repsol SA and marketing firm Publicis Groupe.
United States
At the time, an overwhelming number of analysts in the liberty movement assumed Trump would lose, and that Clinton, by hook or by crook, would become president. Why would the establishment run Biden (like they ran Clinton), perhaps the worst possible choice if they hope to rally people against Trump and conservatives? That said, if the economic decline is severe enough into November, the election numbers could still be very close because of the backlash against Trump. He also said that the Fed has played a big role in his thinking about markets. Bianco said that the Fed could benefit from someone who won’t just toe the line, and that having a heterodox thinker on board could enhance the institution. With all major fundamentals either stagnant or in decline, and with corporate debt, consumer debt and national debt skyrocketing, an enormous bubble was being created in the US economy. The market is paradoxical in the sense that it expects unlimited Fed and fiscal support, but it also doesn’t expect higher rates or inflation.
China
Beijing vowed retaliation for the “unprecedented escalation” of tensions.
Europe
The divergences within Europe are deep, but the economic failure to stage any real recovery from the 2008 crisis spreads across the entire EU. The EU committed 30% of its recovery fund to address climate concerns. What to Keep an Eye On Boris Johnson will stress the value of the U.K. in a visit to Scotland today, aiming to head off growing support for independence. Greece’s prime minister also said this week that EU sanctions await Turkey if it moves forward with illegal drilling. Yields on German 10-year debt held their ground in the three months since Angela Merkel and Emmanuel Macron first backed the bloc’s fund. ECB President Christine Lagarde said female leaders proved themselves during the pandemic.
1 
