The charts that matter: gold and bitcoin both slide
Gold and its modern counterpart, bitcoin, both sold off this week. Here’s what’s happened to the charts that matter most to the global economy.
Welcome back.
This week on the cover of the magazine, we take a look at the lorry-driver shortage, explaining where all the drivers have gone, what the consequences are, and what it means for your money.
And our main investment feature this week is on the power of the “grey pound” – how to invest as the world’s population ages. Matthew Partridge picks some of the best ways for you to profit. If you’re not already a subscriber, sign up now and get your first six issues free.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
This week’s “Too Embarrassed To Ask” video explains what “stagflation” is (a nasty combination of economic stagnation and inflation which might be rapidly becoming more pertinent today). Watch the whole thing here (it only takes a couple of minutes).
And in this week’s podcast, Merryn’s joined by Anna Macdonald of Amati Global Investors. She has a particular passion for UK small-cap stocks, and explains to Merryn just how she goes about finding the companies that she hopes will be the blue-chip stocks of tomorrow. Listen to the episode here.
Here are the links for this week’s editions of Money Morning and other web articles you may have missed:
- Monday Money Morning: Should investors be worried about stagflation?
- Web article: State pensioners probably aren’t going to get an 8% pay rise next year
- Tuesday Money Morning: El Salvador could be the shape of things to come for bitcoin – and emerging nations
- Web article: Bitcoin is now legal tender in El Salvador. What does that mean for investors?
- Web article: What’s better than two types of income tax? Three types of income tax!
- Merryn’s blog: China may be cheap, but is it cheap enough to make investing there worth it?
- Wednesday Money Morning: Here’s a useful fund for investing in blockchain without buying bitcoin
- Web article: What is Solana and why has the cryptocurrency rocketed this year?
- Thursday Money Morning: Is China facing a Lehman Brothers moment?
- Web article: Why now is a great time to buy Japanese stocks
- Web article: EasyJet rejects takeover bid and announces £1.2bn rights issue
- Friday Money Morning: Uranium prices are spiking – and conditions look ripe for a longer-term bull market
- Cryptocurrency roundup: Bitcoin sells off even as it becomes legal tender
Now for the charts of the week.
The charts that matter
Gold sold off after a spike at the end of the previous week.
(Gold: three months)
The US dollar index (DXY – a measure of the strength of the dollar against a basket of the currencies of its major trading partners) halted its decline.
(DXY: three months)
The Chinese yuan (or renminbi) again saw very little action (when the red line is rising, the dollar is strengthening while the yuan is weakening).
(Chinese yuan to the US dollar: since 25 Jun 2019)
The yield on the ten-year US government bond ended the week more or less where it started, after an earlier sharp rise was reversed.
(Ten-year US Treasury yield: three months)
The yield on the Japanese ten-year bond climbed higher after news of the prime minister’s resignation.
(Ten-year Japanese government bond yield: three months)
And the yield on the ten-year German Bund nudged slightly higher, perhaps spurred by talk of the ECB possibly cutting back on its stimulus measures.
(Ten-year Bund yield: three months)
Copper drifted sideways.
(Copper: nine months)
The closely-related Aussie dollar pared back its recent gains.
(Aussie dollar vs US dollar exchange rate: three months)
Bitcoin took a mighty tumble, along with most other cryptocurrencies (bar one), even as it became legal tender in El Salvador. However, in the longer term, Dominic thinks it is an “extraordinarily bullish move” for both crypto and country.
(Bitcoin: three months)
US weekly initial jobless claims fell by 35,000 to 310,000. The four-week moving average fell by 16,750 to 339,500. Meanwhile, the nonfarm payrolls figure for August, released last Friday afternoon, was far weaker than expected.
(US initial jobless claims, four-week moving average: since Jan 2020)
The oil price meandered around $71-$72 a barrel.
(Brent crude oil: three months)
Amazon slipped a little.
(Amazon: three months)
But Tesla just keeps on climbing.
(Tesla: three months)
Have a great weekend.
Ben
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
Ben studied modern languages at London University's Queen Mary College. After dabbling unhappily in local government finance for a while, he went to work for The Scotsman newspaper in Edinburgh. The launch of the paper's website, scotsman.com, in the early years of the dotcom craze, saw Ben move online to manage the Business and Motors channels before becoming deputy editor with responsibility for all aspects of online production for The Scotsman, Scotland on Sunday and the Edinburgh Evening News websites, along with the papers' Edinburgh Festivals website.
Ben joined MoneyWeek as website editor in 2008, just as the Great Financial Crisis was brewing. He has written extensively for the website and magazine, with a particular emphasis on alternative finance and fintech, including blockchain and bitcoin.
As an early adopter of bitcoin, Ben bought when the price was under $200, but went on to spend it all on foolish fripperies.
-
Investors pull money from UK equities as government warns of “painful” Budget
The government’s post-election honeymoon period has been short-lived, and investors are shying away from UK equities as a result
By Katie Williams Published
-
Top global fintech companies to invest in
One British fintech hogs the headlines, but there are two top performers in the US. We explain where you should put your money
By David C. Stevenson Published
-
UK wages grow at a record pace
The latest UK wages data will add pressure on the BoE to push interest rates even higher.
By Nicole García Mérida Published
-
Trapped in a time of zombie government
It’s not just companies that are eking out an existence, says Max King. The state is in the twilight zone too.
By Max King Published
-
America is in deep denial over debt
The downgrade in America’s credit rating was much criticised by the US government, says Alex Rankine. But was it a long time coming?
By Alex Rankine Published
-
UK economy avoids stagnation with surprise growth
Gross domestic product increased by 0.2% in the second quarter and by 0.5% in June
By Pedro Gonçalves Published
-
Bank of England raises interest rates to 5.25%
The Bank has hiked rates from 5% to 5.25%, marking the 14th increase in a row. We explain what it means for savers and homeowners - and whether more rate rises are on the horizon
By Ruth Emery Published
-
UK wage growth hits a record high
Stubborn inflation fuels wage growth, hitting a 20-year record high. But unemployment jumps
By Vaishali Varu Published
-
UK inflation remains at 8.7% ‒ what it means for your money
Inflation was unmoved at 8.7% in the 12 months to May. What does this ‘sticky’ rate of inflation mean for your money?
By John Fitzsimons Published
-
VICE bankruptcy: how did it happen?
Was the VICE bankruptcy inevitable? We look into how the once multibillion-dollar came crashing down.
By Jane Lewis Published