There is a problem in Europe stemming from a dogmatic belief that bonds always reduce risk. The last 2 years proves otherwise. Smart banks like UBS have been telling clients to be careful. Now, the WGC lays the whole “bond as Safe Haven“ fallacy bare what amounts to a statistical mandate for pensions to buy gold and sell bonds.
As Featured in J- Post: WGC: Swiss Pensions Should Swap Bonds for Gold
Swiss pension funds are facing an increasingly uncertain economic environment, with inflationary pressures, geopolitical risks, and the end of an era of low interest rates creating challenges. In this context, gold emerges as a strategic asset that offers diversification, risk management, and potential for long-term growth.
It starts in September and ends in November every year
Sell season refers to fund participants, not market price..
Gold can go up during sell season
BBG: Will Gold’s Tailwinds Be Enough to Overcome September Curse?
Bullion has dropped every September since 2017. Over that period, the average decline has been 3.2% in September – easily the worst month of the year, and far below the monthly average gain of 1%.
It’s a phenomenon that’s perplexed economists who believe markets should behave more efficiently, and it isn’t limited to gold: September is also commonly the worst month for US stocks, with average declines of more than 1.5% in the S&P 500 over the past decade.
There is a sell season and a buy season. Both are tied to investor flows. Both are known by the asset allocators and bullion banks. And both, in absence of an external event, are dominant drivers of market behavior annually.
The meta lesson: The MSM is years, not months behind true analysis. Therefore, you, those who have learned to find alternatives to the MSM are years, not months ahead of the rest of the nation.
Equity Recap:
Market News:
Europe’s auto industry is facing a reckoning after losing ground in EVs. VW is now considering factory closures in Germany for the first time in its history.
Politics/Geopolitics: World War BRICS
The US is planning to ramp up pressure on Venezuela. It’s drafting new sanctions against officials close to Nicolás Maduro after his disputed reelection.
Escalating the crackdown on dissent, Venezuela ordered the arrest of presidential candidate Edmundo González hours after Maduro’s plane was seized by the US.
Benjamin Netanyahu said Israel won’t cede control of the border area between Gaza and Egypt even after nationwide protests called for a cease-fire.
Some headlines via NewSquawk or DataTrek
Data on Deck:
MONDAY, SEPT. 2 Labor Day
TUESDAY, SEPT. 3 10:00 am ISM manufacturing Aug. 47.9% 46.8%
WEDNESDAY, SEPT. 4 Factory orders
THURSDAY, SEPT. 5 S&P final U.S. services PMI Aug.
FRIDAY, SEPT. 6 8:30 am U.S. employment report Aug U.S. unemployment rate Aug. 4.2% 4.3%1
