Latest from BCA Research
We continue to view the rally in equities and high-yield corporate bonds since February as a high-risk affair.
U.S. dollar softness has failed to lift equities of late, a tentative warning that correlations are changing as the U.S. economy cools.
The trading action of gold is currently sending a bearish message on the dollar as the price of the precious metal has broken above critical resistance. Though the causation between the dollar and gold usually runs from the former to the latter, gold also has a tendency to sniff out broad-based moves in the greenback. We remain broadly short USD in our portfolio.