Thursday, November 26, 2020

Tag: Why a bear market will lead to a dollar collapse

Why a bear market will lead to a dollar collapse

by Alasdair Macleod, GoldMoney:

Falling equity markets this week are likely to signal the onset of a bear market, responding to a combination of the coronavirus spreading beyond China and persistent indications of a developing recession.

This has provoked a flight into US Treasuries, with the ten-year yield falling to an all-time low of 1.31%. This will prove to be a mistake, given US price inflation which on independent estimates is running close to ten per cent, exposing US Treasuries as badly overpriced.