Bonds and Bullion are soaring after the ugly JOLTS and weak manufacturing data this morning. Spot Gold soared back above $2020. The precious metal has only ever been higher than this on seven days in history…
Investors are shunning the real estate sector again, as headwinds from high rates show no sign of abating.
Property stocks are back among the year’s worst performers. They have plunged 22% since early February, with the threat of recession returning to the top of worries for market participants already calculating the fallout for funding costs from Silicon Valley Bank’s collapse and preparing for rates to remain elevated for longer.
In a market environment where the only hope left is a central bank pivot away from rate hikes and back to QE, any slight detour by any central bank in the west is now put under a microscope with excitement as if stocks are about to be saved. The Bank of England’s minimal intervention in long term gilt purchases to stave off a collapse in the UK pension system recently had investors buzzing with dreams that this was the beginning of a pivot by other central banks back to stimulus. This is not the case.