Confucius: the man who broke the mountain was the same man who started ...
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Sources of Imbalance and the Pushback Against New Divergence
The US dollar's surge alongside gold has eclipsed the equity market rally as the key development in the capital markets. Even the traditional seemingly safe-haven yen was no match for the greenback. The dollar appeared to have been rolling over in Q4 19, as the sentiment surveys in Europe improved, Japanese officials seemingly thought the economy could withstand a sales tax increase, and data suggested the Chinese economy was gaining some traction. However, 2020 has begun with new divergence. The Covid-19 virus has not only crippled the Chinese economy, but its share size and magnitude of its integration in the ... (full story)