Below are some of the most interesting articles, quotes and charts I came across this week. Click here to subscribe to our free weekly newsletter and get this post delivered to your inbox each Saturday morning.
The recent surge in gold prices reflects a “growing belief that a new political order is emerging.”
'The search for golden stability is a response to a world in flux. It reflects a growing belief that a new political order is emerging.' https://t.co/rIr7JjRg9M
— Jesse Felder (@jessefelder) May 9, 2024
Persistent inflationary pressures, driven in part by structural housing shortages, are one factor at work.
'The combination of money printing, a high deficit and a dovish central bank is highly likely to be inflationary. But while in the 1970s oil was the bottleneck, this time it is likely single family housing.' https://t.co/iggCybGDFo
— Jesse Felder (@jessefelder) May 7, 2024
Growing discord among major trading partners is another.
'When automakers, tech companies and regulators say they're just protecting our market from unsafe products, it feels hollow. Instead, it feels like grandstanding, and a tacit admission that they have no intention of trying to do better.' https://t.co/YETOf9yIbP pic.twitter.com/N1GkHc0bqR
— Jesse Felder (@jessefelder) May 10, 2024
There is also the possibility that gold prices may be discounting a downshift in the global economy.
'The global cyclicals vs defensives relative performance line recently capped out at the top end of its trend channel — this is something that signaled 3 major market peaks over the past decade.' https://t.co/IUL7VfEMMr by @topdowncharts pic.twitter.com/OnUDfaoQeK
— Jesse Felder (@jessefelder) May 6, 2024
And, beneath the surface, the stock market may be sending a similar signal.
'Statistically, the current set of market conditions looks more "like" a major bull market peak than any point in the past century, with the possible exception of the 1929 peak.' https://t.co/qyzQMleiYo by @hussmanjp pic.twitter.com/RdtVySKvR8
— Jesse Felder (@jessefelder) May 6, 2024
