Modest markets mask Fed fears March 16, 2021SharePrint US dollar, Wall Street show gains US bonds stabilised overnight, allowing the FOMO buy-everything crowd to dip their toes back into the magical healing waters of technology stocks. Buy everything really did mean buy everything, though, with all three major Wall Street indexes closing higher. Unusually, that same premise saw the US dollar and precious metals, notably gold, rise as well, a deviation from the mechanical correlation playbook of late. The relief that Friday’s US bond tantrum did not result in another trip to the naughty corner was palpable. However, the US dollar and gold rising even as technology stocks rose hints that all is not quite right. One must respect the linkages of late, sell bonds, sell technology, buy cyclical, buy oil every day, buy US dollar, buy gold, oh wait, its gold, sell it anyway no matter what is going on. Bitcoin has also given up all its “we’re Sleepless on Saturday what shall we do, buy bitcoin,” rally as well. Thankfully, the nonsensical noise about it being the inflation hedge of a new generation has ebbed as well, although, like McArthur, I am sure it will be back.