All Global Assets vs. UUP
Back in the olden days investors had the difficult task when markets turned risk off which of three safe haven currencies to buy: the FXY, FXF, or UUP.
First the Swiss Franc moved to risk-on and then, just this last week, the Yen.
Now there is only one...UUP risk-off currency, with every other asset in the world (including TLT) having some risk-on characteristics.
What is means is the USD is the sole black hole in the financial world able to draw all the value in from every other asset.
Of the 22 listed risk assets the GA can carry 15 are currently in risk on mode with 10/15 at FS and 5/10 at HS.
Seven (7) assets have fallen into the black hole of the USD and are classified as Toxic (T).
As risk-on expands half shares will become full and the toxic number will fall.
As risk-off expands full shares will become half and half shares toxic.
A full blown market melt-down with a soaring USD would have all 22 assets in the T column.
