from Dan Norcini:
These credit/currency related crises that we have experienced since 2008 all have produced the same thing after the market begins to sift through the details – a DEFLATIONARY reaction.
By that I mean a rush into the relative safety of US Treasuries out of equities. The result is a drop in interest rates as investors seek return OF capital and not necessarily return ON capital.
In the process, the Japanese Yen has tended to be the recipient of inflows.
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