Random thoughts post the DoubleLine conference call:
There are 2 themes that ran through the call to our senses:
1- Gundlach is looking for confirmation of his recession predictions and has nothing solid yet, and admits as much.
2- He is almost adamant that the USD is set up for a drop.
To reconcile the recession with a weaker USD isnt a big leap, as a recession would precipitate the need for a weaker dollar.
More on how that statement fits with Gundlach’s logic on the Goldfix tomorrow.
Here are a few slides we thought relevant and/or thought provoking as they pertain to USD, recessions, and gold pricing. We expect to post the whole slideshow tomorrow.
Register for the Goldfix at bottom. It’s free and more informative than what passes for analysis by the usual goldbug crowd.
Copper/Bond Yield Relationship:
Inflation at its core does not seem to be backing off:
A weaker USD will likely bolster EM more than US stocks:
USD: Strong But Rolling Over.
H/t @zerohedge for a couple comments in here.
Commodity Prices: At Odds With the Recession fears so far.
Debt and Debt Service: Too Much for Too Little
Gold: ‘Strong despite… and should do quite well when USD backs off’
Tune in for full analysis tomorrow.