Without official data to guide them, investors have adopted a split personality approach: risk-on and risk-off at the same time.
S&P 500 futures were up 0.33% this morning, premarket, after the index set a new record on Friday. That suggests traders are highly optimistic, even though they’re in the dark about the health of the underlying economy.
At the same time, gold futures are poised to break through $4,000 per troy ounce in the next few days. The price of gold is up 50% year to date, (it was $3,966.80 this morning on the Comex continuous contract index). Gold is usually regarded as a safe haven asset—suggesting investors are fearful.
Bitcoin went over $125,000 per coin yesterday and is reapproaching that all-time high this morning. Oddly, Wall Street now seems to regard Bitcoin as a “safe” alternative to stocks, akin to gold, even though it is incredibly volatile.
Here’s a snapshot of the markets ahead of the opening bell in New York this morning:
