The weekly commentary from BarCap combining Fixed income and commodities.
An interesting set of assets to combine here. Historic correlations and inverse correlations between the pair at different stages of the cycle. Worthy of comment and discussion in itself but another time and place.
Commodities are under price pressure here. The monetary tail winds are under threat in the US and China. The demand story remains under pressure from a struggling world economy. The combination has this week confirmed the price breakdown continuation of several commodities, copper included. Not what we would expect to see on the verge of theoretically tighter monetary conditions and the recovery reaching escape velocity. (Emphasis added!).
Here the report.
And here Commerz on the bullion technicals. Everyone is once again bearish the bullion. As Barcap put it perfectly, for now, “paper hard to beat”.
Commerz-BullionWklyTech20-11-2013
Bitcoins and paper the perfect digital virtual wealth creation world? Personally as an investor and trader I don’t mind where i make a margin from but please don’t ask me to believe in the sustainability of any of these current paper trends. (Print, pump, dump, is a more appropriate belief model, in my view).
All the best
Rich