Notes from the kitchen - Episode 2
- Expect disruption to further US Stimulus measures. Democrats heading toward an interesting trap between supporting Trump, or being blamed for delaying economic assistance. 90% of US Press think Trump on the way out. Again.
- 2nd wave looks to be gathering momentum in Europe. French Dockworkers stepping in to disrupt what COVID isn’t.
- US Dollar struggling to catch a bid, 2% down against the EUR over the week, a region about to once again flood the market with 2 Trillion of ‘economic help’. Which won’t. (If your currency is even losing value against the Pound at the moment, you need to start asking questions).
- Bonds have tightened further from already ‘unsustainable’ levels. Most investment grade indices now looking positive for year to date. Focus shifting from return TO capital, to return OF capital.
- Interesting sector rotation in equity markets over the last week, with previous leaders declining, and previous laggards leading. Except for Leisure. Or Travel. Or Retail. Or Energy. Or Real Estate.
- Gold price to Silver price Ratio, another thing nobody had taken any notice of until this week, back to 83 (From 115 last week). And Gold was up 6% on the week. Go figure, as our American friends might say.