Weekly Update 18 Jun 2021 Bonds on fire!

Gold stocks and metals moved lower, but energy, agricultural commodities, stocks, bonds and cryptos were in the green. The largest gains were in long term bonds, up 8.6%, and crude oil, up 7.2%. The week's worst performers were gold stocks, which fell 6.4%, and palladium, which dropped 2.9%.

National currencies moved up strongly, led by the US Dollar (up 6.1%) and the Japanese Yen (up 5.6%). The Canadian Dollar and the Euro lagged their peers, rising 3.5% and 3.9% respectively. The rising Dollar set bonds on fire, sending the long term bond fund TLT up 8.6%, and dragging short term notes up 5.9%.

Cryptocurrencies were in the green though not as strongly as the nationals. Most of the gains were in the smaller names; the broad index of 30 cryptos rose 2.4%, while Bitcoin gained 1.7%, and Ether added 0.6%.

Gold stocks were the only declining equities, falling 6.4%, the worst loss of the week. Japanese stocks had the largest rally, rising 5.7%. The Dow Industrials trailed its peers, gaining 2.4%, but was barely outperformed by the Euro STOXX50, which rose 2.5%.

Commodities were mixed: metals fell, but everything else rose. Palladium (down 2.9%) and copper (off 2.8%) took the largest hits. Silver was relatively buoyant, giving up just 0.5%. On the plus side, crude oil soared 7.2%, and cotton rose 2.9%.

Year over year, bonds are still in the red, along with the USD and JPY; everything else is in the green. Long term bonds are down 11.8% even after this week's stellar performance. The second worst asset has been the Yen, which has declined 6.1%. Cryptocurrencies have massively outperformed all other asset classes; in particular, Ethereum has risen 831.4%. Outside of crypto, crude oil (up 78.9%) and copper (up 55.8%) have put up the best gains.

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