Risk Off

Spot markets ; Gold +1.5%,Silver +2.5%,Platinum 2.3% palladium +2.6%, 30 year yields down 5 bps ,trading below 2% for first time since September,Next up 1.9% 30+ year lows

From Bank of America survey

Not surprisingly, participants in BofA’s closely-watched Global Fund Manager survey turned less bullish in February compared to last month thanks (in part anyway) to the coronavirus. The title of the new edition is “New highs, fewer bulls”.

The bank’s Michael Hartnett describes a “deflation theme” characterized by a “combo of tepid macro, COVID-19 virus [and] oil’s plunge offset by QE-forever consensus”. The result is what he calls “full capitulation into deflation assets”

The US election still tops the “tail risks” list, followed by a bursting of the bond bubble. Coronavirus came in a “disappointing” third place.But there’s no need to worry, apparently. Because through it all, respondents still see room for stocks to run. In fact, survey participants see upside to 3,470 on the S&P.

Deflation trades? is that why precious metals are Bid? The Stock market is the teflon Don,Nothing Negative will stick, there always appears to be greener pastures to every negative story. We all Know one day there won’t be

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