Bitcoin & Black Gold Bid As Stagflation Fears Wreck 52-Year-Old Equity Win-Streak


The S&P 500 was on course for its 15th positive week of the last 16, but a late-day sell-off spoiled the historic streak which hasn't happened since March 1972.

This occurred in a week that saw hotter-than-expected inflation (CPI and PPI), but weaker-than-expected retail sales, industrial production, and housing activity - which all sounds very stagflation-y.

But, based on the lagged impact of the dramatic easing of financial conditions last year, I suspect this 'weak' week is a blip and economic 'animal spirits 2.0' continues for another month at least...

Source: Bloomberg

hotter than expected CPI, jobless claims, and then PPI means higher treasury yields which means higher US Mortgage rates...

Source: Bloomberg

Bitcoin has been on a tear - trading over USD$52,0000 - all thanks to the USD$2bn of net inflows (that's that key word again!) into Spot Bitcoin ETF's this week past.

Source: Bloomberg

And the Bitcoin all time high seems to be a potential target of the current bull run...

Source: Bloomberg

Notably, bitcoin ETFs have seen almost $5BN of net inflows since inception and during that time, Gold ETFs have seen net outflows of over $2BN...

Source: Bloomberg

Oil prices rallied for the 4th week of the last 5, with WTI back above $79 and it highest close since the first week of November...

Source: Bloomberg

ASX listed energy giant Woodside seems one of a very few listed ASX stocks that appears to be offering any value. WDS is also trading cum-its next dividend (yet to be declared)

Source: Iress

Finally, is history going to repeat?

Source: Bloomberg

0.94 represents a strong positive linear relationship between the two variables.

Happy Monday!

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