Another historic week in the U.S. but markets and the economy continue to rattle on. We are seeing some divergences in the indicators suggesting that volatility could heat up. The put/call ratio hit another record low in favour of calls. Bond yields have been rising and spreads between the short and long end are as favourable as they have ever been. That’s great for banks. Upward pressure on yields has put upward pressure on the U.S. dollar and that weighed on gold this past week.
