Credit Spreads ticking new highs for the cycle

High Yield spreads are elevating

And the message is not a happy one for the risk ‘on’ world, which is most of the investing world. Combine it with Gold/Silver, Gold/Copper and even Gold/SPX and you have a recipe for more pain; lots of it despite any bouncing the markets may do. And despite the fact that gold has not even gotten off its ample butt yet either. Silver? Please…

Risk is flying off and it is flying into the US dollar, which has diverged the inflation for so long now, and very recently, Treasury bonds. You know what comes next (I know you do because you read this website). Okay, that’s a vague, even useless statement. So let me be useful; what comes next – pending any risk ‘on’ relief is the completion of the bear market and the completion of the end phase of inflation. What also comes next is gold’s counter-cyclical feature. But that is not typically early to the party like USD or even T-bonds. So yeah, patience. That last things does not come next. It should always be there.

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