Asset markets are in the cusp of a perfect storm. The yield of 10-year US treasury notes is within striking distance of the 4.5% mark after breaking higher in the last trading days of March – just 50 bps or so away from the Federal fund rates of 5%, stock market indices vaulting to all-time heights since the pandemic despite a pull back after the latest flare-up in the geopolitical tensions in the Middle East, benchmark Brent crude raking up a gain of 18.94% so far in 2024, the yellow metal price beating its own records every trading day with the dollar index (DXY), the go-to-gauge that tracks the movement of US dollar against a basket of currencies, in toe, investors never had their varied trading strategies put to test like this ever before.
The pattern lays threadbare the reality of co-integrated markets – a close correlation among different asset classes – and the dangers of a contagion or a crash in one pocket of the market having its ripple effect on other asset markets as we saw during the Asian Financial Crisis of the late 1990s.
It may be appropriate for us to leave the task of deciphering the current asset market pattern to the high priests of economic theory to interpret. Rather, we may focus on the immediate puzzle that has been baffling everyone alike – the converging trend in the US dollar index and the prices of yellow metal, which in theory are inversely related. As far as the theory goes, since yellow metal prices are denominated in dollar, an uptick in the value of latter should have softened the prices of former on a pro-rata basis. Curiously, that is not the case as of now.
Denne historien er fra May -June 2024-utgaven av UNIQUE TIMES.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra May -June 2024-utgaven av UNIQUE TIMES.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Sri Lanka: The Fantabulous Emerald Island
With its sunkissed beaches, tropical forests, rolling mist-capped hills, magnificent monuments and tantalising cuisine, Sri Lanka has everything to woo visitors
The Beauty Secret in Your Pantry: Rice Water
In the quest for flawless skin and luscious hair, people often turn to exotic, expensive products, not realising that some of the most potent beauty secrets are hidden in their kitchen pantry.
Unleash Your Strength With the Transformative Power of Squats
Imagine a single exercise that can redefine your fitness journey, transform your strength, balance, and overall well-being. Welcome to the world of squats, a fundamental move that packs a punch far beyond its simplicity.
Analyse, Evaluate and Reskill Yourselves!
Knowing your purpose and having clearly set goals will help you have conviction, discernment and focus. Finding your 'why' always helps you find the meaning of what you do, and your life in general.
Virility and its Physical, Emotional and Lifestyle Connections
Regular physical activity, a balanced diet, and maintaining a healthy weight are essential for reducing the risk of ED and related conditions. Men who make healthier lifestyle changes often experience better sexual health and overall well-being.
Union Budget 2024 - A Brief Review Of Some Of The Key Direct Tax Proposals - Part II
The Finance Bill proposed that the long-term capital gains on the ransfer of unlisted securities or shares of a closely held company by non-residents (without payment of STT) on or after July 23, 2024, would increase from 10 percent to 12.5 percent.
Neck pain on the rise among youngsters
The human body is designed to maintain an erect posture. Sleep on your back on a firm mattress and use a small pillow or a cervical pillow. Never sleep in a sitting position or any other compromised position especially when travelling.
Embodiment of Compassionate Leadership: Dr Leema Rose Martin
Leema’s leadership style is a unique blend of administrative skills and a humanitarian outlook. She is a visionary leader who understands that the success of a company is not just measured by its financial performance but also by its impact on society.
Understanding the Recent Surge in Climate Disasters: A Management Perspective
Building durability is not just about physical infrastructure but also about developing adaptive capacities among communities and businesses. Training programmes, public awareness campaigns, and the integration of climate education into curricula are crucial for empowering individuals and institutions to respond effectively to climate threats.
What I Make Out of This Year's Union Budget
It covers the whole gamut of economic planning and aims at making India a Viksit Bharat of citizens with higher disposable income and purchasing power by 2047
