Normally when bond yields drop, investors have inferred this is positive for the NASDAQ and bitcoin, "but in reality, we are seeing the opposite," says Alfonso Peccatiello, author of https://TheMacroCompass.substack.com. "Risk premia is widening," he tells our Daniela Cambone, and investors are looking to be compensated more for risky assets. "The Fed put is not here," Peccatiello states, and they cannot rescue markets due to improper conditions to apply it. He illustrates what the Federal Reserve has been precisely looking for to slow down the economy, comparing the unevenness between mortgage rates for everyday citizens and treasury yields. "Copper has started to wobble a bit," but agricultural commodities have continued to rise, which signals an alarm, he continues. Gold is temporarily underperforming inflation so far in 2022, "due to real interest rates rising very fast," he concludes. Video by Stansberry Research.
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