Submitted by Adam Taggart of PeakProsperity
Fortunes Will Be Made & Lost When Capital Flees To Safety
Little did I realize when creating the short video below how prescient it would quickly become in the wake of last night's Brexit vote...
Its message is simple: there's a preponderance of data that shows the world's major asset markets are dangerously overvalued. And when these asset bubbles start to burst, the 'save haven' markets that investment capital will try to flee to are ridiculously small. Investors who do not start moving their capital in advance of crisis will be forced to pay much higher prices for safety - or may find they can't get into these haven assets at any price:
The aftermath of last night's Brexit vote is providing us with ample validation of the video's thesis.
Stock prices immediately plunged:
The US dollar surged:
Gold put in a $100/oz reversal (which has since moderated a bit):
And Bitcoin jumped:
And look at the capital fleeing derivatives like sovereign credit default swaps. Losses of over 30% in a matter of hours. Yikes!