As is customary of late, the stock futures slumped badly on Sunday evening, but little by little they were pushed higher, and behold, there was yet another rally on a Monday morning.
Gold and silver of course were sold, but managed to hold up fairly well and even posted modest gains.
Bitcoin has risen to the upper half of its intermediate trading range.
The dollar slipped off the 100 handle.
VIX did its usual dipsy-doodle in the face of increasing risks.
Below is a chart showing the performance of 'alternative asset managers' in the markets. They are not faring well, as the quality of private debt is corroding like its 2007.
The geo-political economic and military risks are sky high, but the markets are looking the other way, as if this is a way to support the effort, in abject denial.
The West is slipping into recession. That last nail in that coffin was the invasion of Iran, and the closing of the Strait of Hormuz as a result of the carelessly uncaring actions of The Mad King.
This afternoon Trump gave Iran an ultimatum for this Tuesday at 8 PM, or face 'obliteration' of its civilian infrastructure, including bridges and power plants. And the markets yawned.
“They were careless people, Tom and Daisy — they smashed up things and creatures and then retreated back into their money or their vast carelessness, or whatever it was that kept them together, and let other people clean up the mess they had made.” F. Scott Fitzgerald, The Great Gatsby
Have a pleasant evening.
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