A New Black Monday
Markets are plunging. Oil prices in a tailspin. Nations are shutting down. The spectre of a recession has arrived at our doorsteps. The catalyst for all these cataclysmic developments boils down to one virus: covid-19. In just a few short weeks, the deadly flu virus had killed thousands, infected thousands more, and inflicted widespread economic damage. The pace of globalisation has ground to a halt.
In these volatile days, investors only trust a few things: bonds and gold. In the US, the 10-year yield touched 0.5% - its lowest yield ever. This stampede is clearly marked on TLT (see below). Meanwhile, Gold, VIX, and the Jap...