It is unusual to see 4 major asset categories trending upwards in the same month. It is not common for at least one asset to be down while the other is up. But this month, it is unusual. After enduring a difficult May and a weak iunie, even the major cryptocurrency rallied.
Normally, it is possible to say that bonds get sold when stocks rise. One could argue that gold rose due to inflation fears, and bonds fell as interest rates rose. However, bonds rallied in July because rates dropped despite inflation fears taking gold higher.
Sometimes, it is best to not come up with any explanations. Sometimes, the explanations offered don’t make sense. It’s better to just look at the price charts and identify trends, and then determine support and resistance levels. Let’s try it in that spirit.
Here are some suggestionsThe daily price chart for Standard and Poor’s 500:
The upward trend that began with the March 2020 pandemic lows continues to climb higher and higher. The S&P 500 opened July at 4360 and ended the month at 4395. This is nothing extraordinary, but it does count as an up. This trend will continue, and 2021 will be an incredible year of gains. If.
Have a look atThe daily price chart for the NASDAQ-100:
This index tracks the movements of major social media and big tech companies. July opened at 14600 and ended at 14959. Although not remarkable, it is better than being the same or going the opposite direction.
The daily price chart for the benchmark Treasury bond indexIt looks like this:
You made money if you bought bonds in July at the beginning and then sold them at the close. The iShares 20+ Treasury Bond eTF started at 144 and soared to 152 mid-month, before closing at 149.
Here are some suggestionsThe daily price chart for the benchmark ETF gold:
The SPDR Gold Shares are moving step by step with the gold price. The price chart for July starts at 166 and ends at 169. This is a profitable July for people who bet on inflation via precious metal.
The daily Bitcoin price chartIt looks like this:
After a catastrophic plunge in April and June, the most popular cryptocurrency has regained its footing and is now on the rise. Bitcoin began at 34000, and ended the month at 40.131.
Each asset class that is up at the same moment in a single month will be different. This must have happened in the past, but I don’t recall when. It must have been a lot of money to search for a home, any home, these days.
This is not investment advice. Before you take any action, do your research.