Payrolls, Bonds, and Gold–can someone figure this out?

/Payrolls, Bonds, and Gold–can someone figure this out?

Payrolls, Bonds, and Gold–can someone figure this out?

By | 2017-08-18T16:59:26+00:00 July 8th, 2013|Uncategorized|2 Comments

Payrolls rose by 195,000 workers in June; much higher than expected…

Payroll_June
…10 yr bond yield soars up to 2.70%, nearly a two-year high. Inflation and/or growth expectations?

10 yr bond yield_intraday
Gold signaled an increase in growth expectations; clearly, we aren’t witnessing an inflation hedge in action.
Ironically, gold has been the clearest path to monetary destruction…wasn’t that supposed to be the Fed’s job? Maybe we need more time…
XAU Curncy (Gold Spot   $_Oz)_intraday
Gold YTD return -27.50%. Ugly.
XAU Curncy (Gold Spot   $_Oz)
Thoughts?

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About the Author:

Wes Gray
After serving as a Captain in the United States Marine Corps, Dr. Gray earned a PhD, and worked as a finance professor at Drexel University. Dr. Gray’s interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management that delivers affordable active exposures for tax-sensitive investors. Dr. Gray has published four books and a number of academic articles. Wes is a regular contributor to multiple industry outlets, to include the following: Wall Street Journal, Forbes, ETF.com, and the CFA Institute. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago and graduated magna cum laude with a BS from The Wharton School of the University of Pennsylvania.
  • Carl Rakes

    I subscribe to this theory.. http://premium.working-money.com/wm/display.asp?art=286

    Basically in a depression/recovery vs the post war usual recession/recovery mode, interest rates rising show a reviving economy, not a policy effort to choke an economy. In a way, it is a return of stability, not inflation. So gold drops, rates and equities rise. Boucher made a 1 paragraph reference to this phenomenon in his book “the Hedge Fund Edge.” I remember reading it 10 years ago and thinking “no way…”