Post election MERKX vs SHY performance
Posted: Tue Nov 15, 2016 9:22 am
Can anyone explain this to me?
http://stockcharts.com/freecharts/perf. ... x%2C%20shy
Please move the slider so the comparison is for the last week.
Wouldn't uncertainty in the US intuitively drive folks away from short term US Treasuries rather than (differentially) toward them?
I completely understand the notion that US debt is the "gold standard" and uncertainty (in general) drives people toward it, but isn't the uncertainty we're talking about here at least partly uncertainty ABOUT THE US BEING WILLING TO DEFAULT??????
[yes, yes, I know there's no rational reason the US would ever default, but there's no rational reason the US would ever elect a demagogue like Trump, either]
http://stockcharts.com/freecharts/perf. ... x%2C%20shy
Please move the slider so the comparison is for the last week.
Wouldn't uncertainty in the US intuitively drive folks away from short term US Treasuries rather than (differentially) toward them?
I completely understand the notion that US debt is the "gold standard" and uncertainty (in general) drives people toward it, but isn't the uncertainty we're talking about here at least partly uncertainty ABOUT THE US BEING WILLING TO DEFAULT??????
[yes, yes, I know there's no rational reason the US would ever default, but there's no rational reason the US would ever elect a demagogue like Trump, either]