Trump Trade Accelerates: Record Highs for Bitcoin and Gold, Tech and Treasury Yields on the Rise
Trump Trade and Stocks
As the much-anticipated day draws near, the so-called 'Trump Trade' continues to surge in various markets, including stocks, cryptocurrencies, bond yields, and gold. The Trump Trade in stocks, in particular, is witnessing a significant upswing.
Gold and Bitcoin Reach New Highs
In other markets, gold has skyrocketed to a new record high. Similarly, Bitcoin has also hit a new record high. If the global money supply is an indicator, Bitcoin could potentially exceed $100k before this surge concludes.
Substantial BTC ETF Flows
In the last two weeks, BTC ETF flows have been substantial, indicating a strong interest in this investment vehicle.
Ethereum's Potential Rise
Ethereum, although currently lagging behind Bitcoin, could be on the verge of a significant increase. This is based on the cryptocurrency's historically close relationship with inflation expectations.
Treasury Yields Reach New Highs
Treasury yields have also reached their highest levels since July 5th, before experiencing a slight decline.
Republican Policy Basket Outperforms
In the stock market, the Republican policy basket is dramatically outperforming the Democrat policy basket. This is another indication of the influence of the Trump Trade.
Mega-Cap Tech Performance
Mega-Cap tech is performing well, pushing Nasdaq up 1% on the day, despite Small Caps and The Dow lagging behind.
Unchanged Dollar and Treasury Yields
The dollar ended the day unchanged but showed a very methodical coiling up during the US session. Similarly, Treasury yields ended the day practically unchanged but experienced a roller-coaster ride during the European session and a decline during the US session.
Oil Prices Decline
Oil prices ended lower again, despite a small rebound after yesterday's significant drop. WTI is currently testing a $67 handle.
Pump Prices and the Election
With a week to go until the election, pump prices are falling, notably and mysteriously decoupled from wholesale gasoline and crude prices.
USA Sovereign Risk
Lastly, USA Sovereign risk remains extremely elevated, adding another layer of complexity to the current market conditions.
Bottom Line
The Trump Trade continues to influence various markets, leading to record highs for Bitcoin and gold, and rises in tech and Treasury yields. How will this trend impact the upcoming election, and what will be the long-term effects on the economy? Share your thoughts and this article with your friends. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
