Is the decline in the precious metals. Cross-currents are fascinating enough to pull me out of my pre-occupations. One one side, we have equity markets making this stairstepping upward move all year long, confident in the money printing of the Fed. The Fed sounds like they are taking away QE, because economic activity is improving and the market gives up a quick 100 S&P points. So, good economic news is bad and bad economic news is good ?
Since yesterday, Fed-heads have been on the airwaves, interpreting what the Fed Chairman said, reassuring markets that QE is not going to stop anytime soon, at least not till the unemployment rate reaches 5.5% says the one with Indian sounding name. And so are assorted editorials in the financial press, all trying to find the recent Goldlocks-ian sweet spot, that will keep equities chugging along merrily.
Meanwhile, emerging markets and the rest of the world are in some kinda turmoil. The bond market seems to be saying rates are going up, gold on the other hand is saying there is no inflation in sight? One of them has got to be wrong.