Executive Summary
Investors have become accustomed to the periodic stampede of traders in markets where the narrative of “China-US trade war” has gone viral. The “truce” has ignited risk-on, and also fuelled speculation that the Fed will go easy on rate cuts.
This may well be the last such stampede – either in risk-on or risk-off direction – under the influence of China trade news, before Election Day. Investors concerned about US monetary inflation, for example, have less to fear now about their protective trades being upset by a stampede.
Analysis here suggests that gold should gain, and the euro lose from a combination of economic, political and geo-political factors, between now and Election Day.
Whoever wins, the White House disenchantment with the tech sector is set to deepen.
Main Article
Main themes:
US monetary risks stacked in inflationary direction
Gold shines in corrupted monetary environment
Viral China-US trade war scare now dying
President Trump’s “peace in our time deals”
Anti-trust attack on Big Tech and beyond
Over-digitalization has reduced prosperity
Dollar hegemony and the euro after Election Day
Bottom line
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