Safety Dance

We can go where we want to
To a place they will never find
And we can act like we come from out of this world
Leave the real one far behind
--Men Without Hats

For me, an important measure of risk aversion continues to be yield on short term T-bills. T-bill yields remain next to nothing. Although extremely reduced appetite for risk was certainly predictable years back, actually seeing it in motion is quite amazing.

That said, as government intervention continues to pour $ trillions of stimulus into economies and markets worldwide, I'm keeping a closer eye on T bill yields for a potential reversal.

If short rates begin to scream higher, this should be bullish for stocks in the near term and, I would think, VERY bullish for gold.

position in gold