Some Global Markets Are Starting To Break

Sep. 27, 2022 9:02 AM ETEWU, EWUS, FKU, HEWU, FLGB, FXB, GBBEF, DBE, RJN, JJE, JJETF, UNG, UNL, GAZ, UGAZF, FXY, JYNFF, YCL, YCS, TBT, TLT, TMV, IEF, SHY, TBF, EDV, TMF, PST, TTT, ZROZ, VGLT, TLH, IEI, BIL, TYO, UBT, UST, PLW, VGSH, SHV, VGIT, GOVT, SCHO, TBX, SCHR, GSY, TYD, EGF, VUSTX, FIBR, GBIL, UDN, USDU, UUP, RINF, AGZ, SPTS, FTSD, LMBS1 Comment
Ivan Martchev profile picture
Ivan Martchev
1.34K Followers

Summary

  • The British pound UK gilts – the equivalent of U.S. Treasuries – had outsized moves on Friday with 10-year gilts surging as much as 50 basis points in a single day, while the pound cratered.
  • The outsized Fed rate hikes in the middle of all this volatility are adding to the problem.
  • Another currency with serious issues is the Japanese yen, which saw an intervention by the Bank of Japan last week in order to stem the yen’s slide.

Financial, stock exchange charts at digital display

sankai

The British pound UK gilts – the equivalent of U.S. Treasuries – had outsized moves on Friday with 10-year gilts surging as much as 50 basis points in a single day, while the pound cratered. This is a good example of how too much QE

US Govt Bond Chart

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Michigan Inflation Chart

Japanese Yen Chart

This article was written by

Ivan Martchev profile picture
1.34K Followers
Ivan Martchev is an investment strategist with Navellier Private Client Group. Previously, Ivan served as editorial director at InvestorPlace Media. Ivan was editor of Louis Rukeyser's Mutual Funds Newsletter and associate editor of Personal Finance Newsletter. Ivan is also co-author of The Silk Road to Riches (Financial Times Press). The book provided analysis of geopolitical issues and investment strategy in natural resources and emerging markets with an emphasis on Asia. The book also correctly predicted the collapse in the U.S. real estate market, the rise of precious metals, and the resulting increased investor interest in emerging markets. Ivan’s commentaries have been published by MSNBC, The Motley Fool and others. Currently Ivan is a weekly editor of Navellier’s Market Mail and a contributor to Marketwatch.

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