“Hiding political risk is not reflected in markets. People are not that nervous, and there are things that could go wrong, particularly when you think about all of the political risks. That adds to the argument for having gold in a portfolio.”
S&P equity futures followed Asian and European stocks lower, driven by weakness in Franch and Italian markets, as French political concerns returned; the pound tumbled after UK monthly retail sales unexpectedly dropped pushing the dollar higher and Euro lower.
Delays in the talks between Greece and its lenders have brought back the ghost of Grexit. And what do citizens do when they feel political and economical insecurity? The run to banks and withdraw deposits.
Pentagon chief Jim Mattis on Thursday rejected any kind of military collaboration with Russia, despite a call by President Vladimir Putin for the West to work with his country on Syria and other issues. “We are not in a position right now to collaborate on a military level.”
Whether it is due to overnight news that much of the recent rally may have been due to one specific fund's cover of a synthetic "short SPY" trade, or just because algo traders have gotten a case of overbought robotic vertigo, S&P futures dropped 0.2% in early Thursday trading as risk appetite fizzled and European shares dropped on concern the longest rally since July 2015 went too far, while the yen, bonds and gold advanced as the dollar fell.
German politics = boring politics – in recent decades this equation has generally held true. And yet, with the new Europe we face, that perhaps is no longer the best thing for them to be. Suddenly politics in Germany has become very interesting and the race for the chancellorship looks open again.
European, Asian stocks declined, halting a global rally that sent U.S. stocks surging to new all time highs faltered, weighing on the S&P although the index rebounded modestly after a kneejerk announcement lower overnight after Trump's National Security Advisor announced his unexpected resignation.
Just about every adult on earth has seen this show before. Greece faces a debt repayment that it cannot meet... and needs fresh bailout funds. Past budget stringency has failed to relieve Greece’s predicament. If Athens were to unwind this crony-capitalist regulatory regime, it would generate an economic dynamism that Greece desperately needs.
Protect against the collapse of the euro and other fiat currencies by diversifying internationally and owning gold and silver bullion coins and bars in the safest vaults in the safest jurisdictions in the world.
European and Asian stocks, S&P futures, bond yields, the dollar and commodity metals are rose, in some cases making new all time highs, lifted by the latest reemergence of the "Trump trades" as hopeful investors once again bet that the U.S. president's tax reform plans will boost economic growth and corporate profits, despite another warning from Goldman that the president's fiscal plan is about to be derailed.