| Rumblings of a "Risk-Off" Market Dear Money & Crisis Reader, Things are becoming very stretched now. Financial markets can act a bit like rubber bands – they will move to great extremes before suddenly “snapping back” in a violent reversal. I see this kind of setup occurring in multiple asset classes right now. As I noted last week, the US dollar is breaking down in a big way. Generally speaking, a weak $USD is good for risk assets like stocks. However, this time around, the $USD is declining much too fast. The pace of the decline is becoming dangerous. In situations like this, it would not be surprising to see the US dollar SNAP BACK rapidly. And that would trigger a significant risk-off move in the markets. |
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