CTAs Start to Exit Gold | Still Cheaper to Buy Homes Than Rent
...if you have Cash and Credit
Market Rundown
Good Morning. Markets are reflecting anxiety about the Ukraine situation. That’s not to say things are materially worse now than they were yesterday. It is to state that a lack of new info or economic data makes people think about what is truly unresolved, namely the crisis in Ukraine and all it entails.
The dollar is up 30. Bonds are essentially flat. Stocks are down about 50 bps on average. Gold is up $10. Silver is up a nice 28 cents now. But once again crude is up $2.50 as we write this. Volatility is now the norm in oil.
Cheers
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JPM on Commodities.
CTAs are getting out of Gold longs. That is good considering where we have stabilized. Their positions were reduced by 8% last week. That isn’t enough for GoldFix taste. We’d like to see it drop around 25% with a similar drop in total open interest before getting comfortable with $1930 as a new home.
BOA on Housing:
Rent Versus Buy? Both are more expensive on the aggregate, but mortgage payments are still relatively cheaper. That said, affordability from a home price/down payment perspective is the worst it’s ever been, meaning extreme barriers to entry. Consumers remain steadfast in their interest to buy, but are uncertain
Meanwhile: People are still moving but at a slower pace as expected
Podcast
Markets focus on Ukraine war risk absent any real news or data
Bitcoin good news from Honduras
Guidance
U.S. President Joe Biden is seeking to rally U.S. allies around harder-hitting sanctions on Russia. Biden will join back-to-back summits Thursday with NATO, the Group of Seven and the European Union in Brussels and is expected to announce new Russia sanctions and energy aid for Europe. Germany and Hungary, meanwhile, sought to put the brakes on a potential Russian oil embargo. Poland is reportedly expelling about 40 Russian diplomats, while Wall Street’s retreat from Russia is the fastest and harshest ever.
Zen Moment
Have a good one
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