What I actually meant was that despite the economic uncertainty dominating the markets, automotive stocks perform better than others yet lower than they did before the Coronavirus outbreak.
1 Like
Please allow me to clarify by saying that the chart covers a longer period of time while the web link points to a 1-day period showing a downtrend. However, I did not add it for advertising purposes but for info, should anyone be interested to find out more. As far as investing is concerned, that is a matter of choice and we do not wish to influence anyone in any way.
Ok so this one has developed. Notice the extra 1.5 Trillion the Fed injected… it wasn’t to stem the stock market falls, it was for this:
This is truly shocking. Now we can see there are major problems. They might not even be able to price US treasuries correctly. This harks back to some similarish problems back in the 1987 crash, but far more severe.
Hold on tight, this rollercoaster is moving fast!
1 Like
Yep - still if you watch the 10yr you will get a handle on the near term - example right now a small long on dax - the bund is saying so.
As usual the bonds told the story - there were 3 reasons to bottom pick.
! - the good news out of China overnight.
2- the reaction of the Asian market to that.
3. wait for the EU bond market to react.
Then wait for dax to begin movement.
3 weeks on… the JPY is at its strongest… and Gold, one of the other safe havens in times of crisis… which was strongly liquidated on Friday (13th Mar), maybe starting to indicate that this “correction” is something more sinister for long term sentiment.
1 Like
You have to remember that Gold is multi-functional - is a commodity, a precious metal (risk) and then often viewed as an alternative currency especially to USD.
Friday USD was bought - Gold sold (currency) / Bonds sold, Yen sold and Gold sold (risk) / and CRB down on Friday close (commodity)
There are days and periods that either one of these can come to the fore - e.g. Chinese New Year etc.
1 Like
Further topics related to this thread, covered by Daily FX
Crises come and go and risk will alternate.
Yes, but we want to protect our capital properly at these times, even make a profit. Hence studying the risk dynamics.