10-Year Treasury yields are testing LT support at 2.00% after falling 120 basis points (bps) since late last year.
Rising global uncertainty has caused a massive outflow from equity funds into bonds.
‘Since the beginning of the year, total equity-fund outflows have tipped the scales at $155 billion, while bonds absorbed aggregate inflows of $182 billion over the same period, the largest bifurcation between the two asset classes in 15-plus years.’ https://t.co/4JpD5J6KzM pic.twitter.com/QD6E5hCkRU
— Jesse Felder (@jessefelder) June 13, 2019
The Dollar Index penetrated its rising trendline, warning of a correction to test 95.
Demand for Gold is boosted by lower bond yields and a lower Dollar. Spot Gold breakout above resistance at $1350 would signal a fresh advance, offering a medium-term target of $1500/ounce (short-term: $1400).
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.