Salient to Investors:

Albert Sung at Katchum Macro-Economic Blog writes:

The Fed can print money but can’t control where it goes. Money is now flowing into Asia – Thailand, Indonesia, Hong Kong, Shanghai, Australia are at new highs, while the Hong Kong and Shanghai real estate markets are making new highs. Asian real estate developers in China are making new highs.

Decoupling between stocks, bonds and the US dollar has started. The bond market is starting to implode as yields rise. If all three markets – stocks, U.S. dollar and bonds – fall, there has to be another part of the market that rises. Money will increasingly flow from the West to the East via the currency market – the yuan and Singapore dollar are making new highs versus the US dollar, Hong Kong had to intervene to prevent the HKD from rising versus the US dollar.

The precious metals market has risen 10% in 3 months.

Investors should look overseas for their investments, or buy real assets like precious metals as Asia is all about commodities.

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