Price Update
Global bond markets are sending a message that investors should not ignore. Government borrowing costs across the United States, Australia, France, the United Kingdom and Japan have climbed to levels not seen in decades, placing renewed pressure on households, companies and governments. Normally, rising bond yields are considered negative for precious metals. Government bonds provide […]...
In Part One of this series, we examined five warning signs that could leave global financial markets increasingly vulnerable to a global economic collapse. Instability in the yen carry trade, rising sovereign debt and bond yields, concentrated equity markets, weakening global property prices and persistent inflation may appear to be separate issues, but they are […]...
Over the past three decades, Australian investors have endured the dot-com collapse, the Global Financial Crisis (GFC), the Covid 19 Pandemic market shock and numerous smaller corrections. Each arrived under different circumstances and the event that ultimately triggered the sell-off was generally easier to identify in hindsight. Financial crises rarely become destructive because of one […]...
The yen carry trade has survived because one fundamental condition has persisted for decades: money has been comparatively cheap to borrow in Japan. Investors could borrow yen at low interest rates, exchange those funds for foreign currencies and invest in higher-yielding bonds, equities and other assets overseas. As examined in the first part of this […]...
The Japanese yen is the third most actively traded currency in the world, but its importance extends well beyond foreign exchange markets. For decades, exceptionally low Japanese interest rates have allowed investors to borrow cheaply in yen and deploy that money into higher-yielding assets overseas, creating what is known as the yen carry trade. The […]...
Only days after entering August on uncertain footing, gold and silver delivered one of their strongest single-day advances in weeks. The move surprised many investors given that precious metals had spent much of the past six months correcting from the extraordinary highs reached earlier this year; however, overnight price action was driven less by any […]...
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