Daily Alert – Wednesday 18th March 2020: Investors sell everything and move into USD; WTI tumbles further

Mark Nugent Daily Alert, March 2020

Daily Alert – Wednesday 18th March 2020: Investors sell everything and move into USD; WTI tumbles further

It has become apparent that equities and bonds are delinked. Normally, when equities go down, as they have been for some time, we see a flight to the risk-free assets that are bonds. So bond pricing goes up and bond yields go down. However, we see bonds selling off, prices going down and bond yields actually going up. GOLD, another safe haven asset which should be rising in this climate, is also dropping as investors sell. Where is all this money going? It is going into USD, the ultimate safe-haven and reserve currency. Going long on USD is a major focus for me now.

To add to the already threatened price war in WTI, the Saudis have just announced an export INCREASE to a record 10m barrels per day. I am now focused on further drops in WTI and will trade accordingly.

VIP Club members can watch the video HERE