May 15th Market Update – Gold and US Treasuries take out important levels; What’s next?

I have uploaded a new market update podcast for May 15, 2018. Click here to go to the show archives page to listen or you can listen on the link below.  I have included links to relevant articles and media on the Show Archives page.  The latest show is on the top of the page.

-This morning’s strong data are repricing certain markets.
-US 10-year treasury takes out 3%, the highest levels since 2011. That is new yield support as treasury prices tumble. Gold falls below 1,300 on very strong dollar rally.
-Any future crisis will result from USD strength, not weakness.
-Gold is not yet ready for prime time as the consensus of the market participants is that things are OK. Gold holds up better during conditions of great uncertainty, and we are not yet there.
-the 1,300 level for gold may sound important, but other levels are more important than the psychological 1,300 price.
-My guess is that the future global economic crisis will come from the emerging markets
-With The Russell 2000 and S&P Smallcap 600 so close to their all-time highs, it’s difficult to imagine seeing any meaningful stock correction.
-Real estate should hold up fine until the 10-year hits 4%. That will put fixed-rate mortgages close to their historic 20 year norms. Get rid of underperforming real estate.
-Canadian sales and prices are slipping. The cost of building a home in Canada is growing; similar to here in the US. In overheated areas the building costs have risen tremendously. Thank you government and the people’s wishes.