Longboard – Looming Trade Wars And Quantitative Tightening

Looming trade wars and quantitative tightening. Our trend observations as of March 26, 2018.

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See 2017 Hedge Fund Letters.

S&P 500: Stocks struggle to regain early year momentum as the talk of trade wars grow louder

• What we’re reading:
  • Trump to set stage for China tariffs amid trade war fears
  • Wall Street climbs with oil, but Facebook's slide checks gains

10-Year U.S. Treasury Notes: As the Federal Reserve begins its expected rate increases for 2018, the downtrend in bonds continue

• What we’re reading:
  • Bond Market Signals Powell's Fed Debut Merely a Risk That Passed
  • Wall Street is watching one key level in the bond market

U.S. Dollar: U.S. Dollar remains weak with growing concerns of trade wars and despite an increase in interest rates

• What we’re reading:
  • Those hoping for a stronger dollar on a Fed hike could be very disappointed
  • How Did the Dollar React after the FOMC’s Interest Rate Hike?

Crude Oil: Oil continues to push higher against increasing U.S. production

• What we’re reading:
  • Oil rises to March high on Middle East tensions, Venezuela concerns
  • OPEC warns Trump’s trade policies could slow economic growth and dent oil demand

Gold: The precious metal continues to be range bound as inflation and political uncertainty remain in focus

• What we’re reading:
  • Gold on track to finish at 3-week low ahead of Fed meeting
  • Gold Awaits You, Powell

Article by Justin Nuckols, Longboard Funds