By Chris Becker
Last week’s price action saw a continued transition of hot money out of bonds and into stocks following the finality of the US presidential election. US stocks hit another record high last week as bond yields exploded higher. With next month ringing in a near certain interest rate rise from the Federal Reserve, the USD is also surging, making a new decade high on the US Dollar Index. Most stock markets continued to be lifted by this rising tide of inflationary forces, as expected, with industrial commodities also swinging higher. The only casualties so far is the traditional inflationary hedge gold which has seen a reversal to its start of year price.
As is usual for Monday morning, I’ll step back and take a bigger picture view of each market, using daily and weekly charts.