by James Hickman
Schiff Sovereign
Well, that was fast.
It only took five days after Moody’s downgrade of the US government’s sovereign credit rating for investors to throw a fit. The result was yesterday’s meltdown trifecta in which ALL three major markets– US stocks, US bonds, and the US dollar– lost significant value.
I wrote about this extensively last month because we saw the same phenomenon after the “Liberation Day” announcement.
Typically, if there’s bad news in a major developed country, investors will simply shift their money into a different asset class within that same country.