The Market Has A New Safe Haven Asset – But You Missed The Rally
This market has a new (and unlikely) safe haven asset: the Chinese yuan.
Earlier this week, some folks were surprised to see the yuan rally following "disappointing" trade data. Specifically, imports and exports missed badly, and yet the onshore yuan strengthened past 6.70 for first time since October.
We endeavored to explain things as follows:
When you think about the yuan, don’t forget these numbers:
CHINA JAN.-JULY TRADE SURPLUS AGAINST U.S. $142.8B
CHINA JULY TRADE SURPLUS AGAINST U
One more example of nearly everyone getting it wrong…..and now “everyone” is so sure that we’re on the precipice of nuclear war.
Likely one more example of false assumptions driven by emotions, not logical analysis.
“But, b-b-but…Trump!”