You’ll Never Find Your Gold on a Sandy Beach (But You Will Here)

Gold hits another new record as Trump attacks Powell

Highlights

• Gold hits another new record as Trump attacks Powell

• The Dow is having its worst April since 1932…

• … as bonds, stocks, and commodities (ex. precious metals) all struggle

• Decline in the job-finding rate is another recession indicator

Key Takeaways

• Asset Classes Struggle Across the Board: Time to identify what we know in the Rumsfeld-ian world of the “known unknowns.” First, nothing outside of cash, gold, the yen, Swiss franc, and safe short-term paper are working. Not the dollar, which has lost its role as a global anchor. Not long-dated Treasuries, despite the fact that market-based inflation expectations on a 10-year horizon are only 2.2%. Not spread products (default risks getting priced in). Not industrial commodities (which are behaving as though a recession is imminent). Certainly not equities, with every sector clobbered in yesterday’s sharp drawdown.