Good morning,
We’ve got one of our best (and longest) Mailtimes yet, so no time to waste on an intro. Thanks to everybody who sent in questions and chart requests; let’s see what is on your fellow readers’ minds!
Questions
How are you viewing the recent Treasury announcement? Will the current trend in yields prevail, or is there enough behind this to be a catalyst for lower rates?
My answer is simple. I don’t view the Treasury announcement as anything because I only look at the charts. If the trend changes, I’ll change my mind, but despite the intervention, the 30-year yield was actually up 1 basis point last week.
And as much as people want to make this a US debt story, this is a global move higher in interest rates. And it’s being confirmed by the equity market.
So the play for fixed income remains simple: Stay out, or stay in cash/ultra-short duration proxies and clip the coupons.
As for what it does change, last week’s announcement definitely fueled some major breakouts in gold, crypto, materials, and energy that, importantly, were setting up prior to the surprise Treasury announcement.
*Excerpt from yesterday’s Monday Morning Playbook. See the report for complete details and charts.
What 2-3 gold stocks look best right now?
I’ll give you two on different sides of the risk spectrum.
NEM: Newmont Mining
Broke out earlier in August and got within $1 of all-time highs. The largest gold miner in the world, and arguably one of the most reliable for participation in a gold rally.
