It Is Tricky Finding Safety From a Market Storm; Now It’s Trump’s Fault That Putin’s Economy Just Won’t Grow;

  • Investors are on edge as the next big market scare might not be far away, but is hard to prepare for
  • The normal pattern of safety has worked for the traditional trio of safety: the yen, Swiss franc and gold have all risen strongly, with gold up 17% just since the start of May
  • Typically, investors think of the dollar as a place of safety behind only gold, the franc and the yen. Instead, the euro proved almost as safe as gold on Monday, and has risen almost every day since President Trump kicked off the latest fears with surprise new tariffs last week

  • As international demand for commodities weakens amid the global trade war, hopes for Russia’s sputtering economy to accelerate in the second half of the year have been dashed
  • Fresh sanctions imposed last week that ban U.S. investors from buying new issues of non-ruble debt will further limit Russia’s access to Western expertise and funds needed to revamp the economy
  • Demand for commodities weakens when China’s prospects worsen in any way, which is especially important for Russia since the Chinese market is considerable for Russia. So, the worse it is for China, the worse it is for Russia