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Gold is Back!

There was THIS yesterday from former Fed Chair Janet Yellen. Yes, she is concerned about the $9.1 trillion in corporate debt, which is almost twice the levels from 2007. The thing about debt and falling markets is that we don’t really know what the ramifications are going to be, because risk evolves over time in ways that nobody ever considers at the outset. And while this might take some time to unfold into a real crisis, investors are already running to safety. The dynamic has definitely changed, buyers are turning into sellers and optimism is making way for uncertainty and doubt.

I sold my last short position this morning, but I did not buy the early rally, which has practically evaporated. Technically speaking this market is dreadful and I’m not smart enough to outwit it. Giving the high levels of unpredictability right now, cash is the only option for me. Most significant is the price action in gold (see chart below). People are parking their money in safe heaven assets and for most that means gold not Bitcoin.

 

Gold

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