Observers of the global economy/finance, asset allocators, and investors have been closely watching this recently: The simultaneous move into negative territory of equities (typically "risk-on" assets), US government bonds (typically "risk-off"), and the dollar (usually a "safe haven"). #economy - ThreadSky

elerianm.bsky.social • 23 days ago

Observers of the global economy/finance, asset allocators, and investors have been closely watching this recently:
The simultaneous move into negative territory of equities (typically "risk-on" assets), US government bonds (typically "risk-off"), and the dollar (usually a "safe haven").
#economy

Comments

duffer04.bsky.social•23 days ago

Blame the stable genius!

fauxnymous.bsky.social•23 days ago

This is not Powell’s fault. Replacing Powell to fix THIS is not clever, it’s politics.

larryarcher.bsky.social•23 days ago

Falling into a jungle where normal rules and relationships are gone

simonziegler.bsky.social•23 days ago

Mohamed, for readers who don’t focus so much on economics, would you please describe briefly the extent to which such a triple dip is unusual?

wmcintosh.bsky.social•23 days ago

*Dr. El-Erian

joe-b-canuck.bsky.social•23 days ago

Stocks and bonds are usually negatively correlated and the US$ was often used as a safe-haven currency in times of financial turmoil, thus propelling its value. So the usual behavior was stocks down, bond prices and US$ up. This time around, it looks as a global repudiation of US financial assets.

simonziegler.bsky.social•23 days ago

Absolutely. I’m hoping Mohamed may have some statistic tucked away to show that this has only happened in X, Y or Z extreme situations before. Hence US equities, debt and currency dropping so sharply, fast and synchronously is just bad.

coo1guy.bsky.social•23 days ago

We've entered a post-America world and we probably lack the imagination to see the perks (if democracy survives).

isosolies.bsky.social•23 days ago

I think as long as Trump is in power no one can trust the US not to do something incredibly stupid. So the best place to be is out of Dollar assets, and out of the reach of US jurisdiction.

sccharlston716.bsky.social•23 days ago

Also seeing massive redirect of ETF$s away from US market ETF QQQ, Russell and Dow into EU and Asian markets.

US is investing into Europe like Europe did once into us.

gvenkatesh.bsky.social•23 days ago

Another data point is the overperformance of world stocks ex US vs US equities. Some of this is due to dollar fall in dollar denominated holdings. If you factor that out, one can see if there really is a repudiation of US assets.

Seems to me like the move is into gold and real estate as safety.

abecedarian.bsky.social•23 days ago

I'm sure there are no hidden risks that will cause a sudden shock. It will be a nice orderly process like always.

lin-white.bsky.social•22 days ago

As Nero fiddles while Rome burns.

joe-b-canuck.bsky.social•23 days ago

Smells like the end of a financial era. And the noise made around the chairmanship of the Fed is not helping...

idviii.bsky.social•23 days ago

What we’re seeing here is a single thing - sell America. Stocks, bonds, currency - closing down sale. Everything must go. Moving to a new ideological location.

maga-lies.bsky.social•23 days ago

Scary

deportelon.bsky.social•23 days ago

All hail the Dear Leader. He is 6’3”, 224 pounds and will live to be 250 years old until he is assumed up to heaven. The do-nothing economy that the unjust outcome of WW2 created has been made great again, for the first time since the golden age of the 19th century.

wndlb.bsky.social•23 days ago

Well, if *your* resting pulse rate, at age 78, and looking like that, was 62, you too might live to be...

twopanda.bsky.social•23 days ago

by design? or the free market losing trust?

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