Readers have no doubt noticed that numerous inter-market correlations seem to have been suspended
lately, and that many things are happening that superficially seem to make little sense (e.g. falling junk bond yields while defaults are surging; the yen rising since the BoJ adopted negative rates;
stocks rising amid a persistent decline in earnings growth; bonds,
gold and
stocks moving in unison, etc., etc.).
With all of the uncertainty in the
stock market
lately due to high levels of volatility in both February and August, people are going risk - off (meaning they are shedding risky assets in exchange for more conservative plays) and many people are moving into
gold as a safe haven.