EDITOR NOTE: There’s news that Pfizer and BioNTech are completing Phase 3 trials of a vaccine for the current pandemic. So far, the results are 90% successful. The market responded--Treasury yields are up, gold futures are down, the stock market is rallying. Is the market placing the cart before the horse, or is it on the wrong road altogether. It makes sense to dump Treasuries, as they’re hardly yielding anything at all (no real safety), but dumping gold in light of the monetary and fiscal responses to the crisis just doesn’t make sense. Winter, in the form of high inflation, is coming. The market may be surging, but tech is the only sector leading it. Now’s the time to protect your money. No matter how much you make in the market between now and the coming plunge, the cost of living may erode your wealth faster than the markets’ eventual post-crash recovery.
A Phase 3 trial showing the COVID-19 vaccine being developed by Pfizer and BioNTech was more than 90% effective hit several asset classes, as well as boosting stock futures ES00, 4.45%. The yield on the 10-year Treasury TMUBMUSD10Y, 0.922% jumped 9 basis points to 0.91%, and gold futures GC00, -3.84% sunk $33 an ounce. The Nasdaq 100 contract NQ00, 0.62%, propped up by the tech heavyweights, underperformed the broader market with a 0.7% advance.
Originally posted on MarketWatch