This past weekend, I went over the most indicative recession macroeconomic signals. I wanted to get the pulse on how professionals are positioning right now.
Tuesday’s market action showed us how nervous traders around the world really are.
Not one media outlet has focused on some truly disturbing words, uttered by FED Chairman, Jerome Powell, but he has made some comments, which have put into question the sanity of the central bankers at this stage of the cycle.
As I showed you last week, 88.7% of the 70 asset classes tracked by Deutsche Bank have netted negative total returns this year. The last time it happened was right as cars and electricity were being introduced in our world and getting commercialized. It was close to 100 years ago.
To the surprise of many, the U.S. dollar has been the best-performing asset of 2018 – something that hasn’t happened in many years. It’s a remarkable and unexpected phenomenon… or at least, it was unexpected to investors who took the wrong side of the trade. But how can we explain the dollar’s strength, and why is it happening now? And, should you be moving all into cash now?